If you are wondering how you are doing financially in the midst of the pandemic compared to your neighbors, or other Americans in general, your credit score may be one good measure.
In September, the personal finance website WalletHub compared the average TransUnion credit rating of residents in 2,572 US cities to compile a list of top and bottom performers in terms of creditworthiness.
Overall, recent research shows that Americans are generally doing well despite the economic devastation caused by Covid-19. Largely due to federal emergency relief efforts, such as stimulus tests, interruptions in the repayment of federal student loans and mortgage loans, and long-term unemployment insurance payments, consumers are both saving more money and paying off their debts.
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In fact, WalletHub says debt payments are at record levels. As a result, credit scores are improving nationwide. In July, for example, the average national credit score rose to a high of 711, according to FICO, the developer of one of the most widely used scores by lenders.
According to WalletHub, the five best cities with the highest median credit rating were:
- The Villages, Florida (807)
- Sun City West, Arizona (789)
- Sun City Center, Florida (789)
- Green Valley, Arizona (788)
- Los Altos, California (784)
However, the bottom five cities are:
- Camden, New Jersey (552)
- Louis, Illinois (552)
- Chester, Pennsylvania (552)
- Detroit (560)
- Gary, Indiana (561)
Despite all the good news, experts believe that the full impact of the pandemic on credit points may only be known before the end of government aid.
“Serious breach rates remain near record lows,” Matt Komos, vice president of research and advice at TransUnion, recently told CNBC. “The performance of the accounts still in accommodation will help shape the true consumer credit picture.”
Full results of the WalletHub study are available here.