This piece was published in TIME Magazine, where John is a regular contributor. A special thank you to Experian and our Operation HOPE board member, Craig Boundy, for making the data available to us for the groundbreaking HOPE Financial Wellness Index.
In America, where you live can determine how long you live, and the disparity in life expectancy is not solely about access to healthcare or education. It’s intricately tied to something less obvious but profoundly impactful: your neighborhood’s average credit score. According to research from Operation HOPE, people in neighborhoods with an average credit score of 700 or higher can live 10 to 20 years longer than those in areas where the average score is around 580. This stark difference is a powerful indicator of how financial health directly correlates with overall well-being. The findings are clear: financial wellness is a crucial determinant of overall well-being and life expectancy.
A credit score is more than just a number; it’s a measure of financial stability, opportunity, and health. High-credit-score communities tend to have better access to credit, lower interest rates, and more opportunities for homeownership and entrepreneurship. This creates a positive cycle that strengthens the local economy and improves quality of life. Translation: More hope. In contrast, neighborhoods with lower credit scores often struggle with underinvestment, higher crime rates, and poorer health outcomes—issues that are exacerbated by the stress and financial instability that low credit scores represent.
The national average credit score recently hit 695, the highest in 13 years, thanks in part to the financial reprieve provided by the COVID-19 pandemic’s stimulus measures. However, this average masks significant disparities. In states like Mississippi, where the average credit score is as low as 666, the impacts of low financial health are felt most acutely. These communities often lack the resources and opportunities to improve their financial situation, trapping residents in a cycle of poverty and poor health. Mississippi has the lowest credit average and median credit score in America, and Minnesota has the highest in the nation, at 742. And this has a direct effect on one’s level of hope, “how you’re living,” and literally—how long you live.
Specifically, a difference of about 100-150 points in average credit scores between neighborhoods that are geographically close (for example, just 15 minutes apart) can correlate with a 20-year difference in life expectancy. If you live in a 500 credit score neighborhood, you are more likely than not to live to 61 on average, and if you live in a 700 credit score neighborhood that would average life span extends to 81 years on average.
If you live in a 500 credit score neighborhood—whether it be black and white urban, or poor white rural—here’s what you see: a check cashier, next to a payday lender, next to a (car) title lending store, next to a rent to own store, next to liquor store, and a church down the street, trying to make you feel just a little bit better once a week.
This is why we must focus on raising credit scores by an average of 100 points in these underserved communities, whether they are predominantly Black and brown urban areas or white rural ones.
Originally published in TIME