This Michigan City Has the Lowest Average Credit Score in the USA

Another day, another dubious distinction for Detroit.

New statistics show Michigan's biggest city has the lowest average credit score in America.

Worse yet, it's not even close. The credit reporting agency Equifax says the average score in America is about 705. Detroit can't even see daylight from where it currently stands.

Why Are Detroit's Credit Scores So Low?

There are a few contributing factors as to why credit scores in Detroit are on the struggle bus.

• Economic Hardships - Detroit's faced decades of financial instability, from the decline of the auto industry to the city's bankruptcy in 2013.
• High Poverty Rates - Nearly a third of Detroit's population lives below the poverty line, making it hard for many people to keep up with their bills, avoid late payments and associated fees, or build strong credit.
• Lack of Financial Education - A lot of people don't fully grasp who credit works, leading to common mistakes like missed payments, maxing out credit cards, and/or just ignoring credit completely.

SEE ALSO: 25 Michigan Cities With the Highest Credit Scores

The situation in Detroit isn't totally hopeless though.

Can Detroit Turn It Around?

While the city's overall average credit score - 566, according to the personal finance website WalletHub - is abysmal, a little attention to a few details could go a long way in helping to turn things around in Detroit.

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The Urban Institute says paying bills on time, keeping credit card balances low, and checking credit reports for errors can help Detroit turn the corner. The institute also recommends financial literacy initiatives and other community programs to help struggling Detroit residents get on the right track.

Detroit may lead this list, but there are other American cities in the struggle. Check out which cities have the worst credit scores in the USA below.