QuinStreet: CardRatings.com names best and worst states for post-pandemic credit

Vermont leads the way and Nevada ranks last on credit terms

Foster City, California – June 17, 2021 – As the United States continues to open following the COVID-19 pandemic, its effects on the economy are still present. While statistics on average bankruptcy rates, credit scores and foreclosure rates may look promising at first glance thanks to the help of temporary government programs, a new analysis from CardRatings.com tells a different story when analyzing five factors.

The leading credit card review and comparison site identifies states with the best and worst credit terms after the pandemic in its latest research. Richard Barrington, author of the annual review Better and worse credit conditions study, warns consumers not to feel too comfortable with their financial situation and instead plan ahead for the next emergency.

Best States for Credit

1. Vermont: After taking second place last year, credit conditions are excellent across the board
2. South Dakota: This state ranks in the top10 in four of the five rankings
3. New Hampshire (tie): The Granite State ranks better than the median in all five categories
3. North Dakota (tie): After finishing first the last four times, North Dakota falls to third place but remains better than median in all five rankings
5. Minnesota: Most people would like to have a score of 720 credits, but in Minnesota 720 is average and is the best in the country for this category

The worst states for credit

1. Nevada: The Silver State hasn’t budged from last year – it’s worse than the median in all five categories and among the 10 worst states for credit terms in four classifications
2. Georgia: Ranks in the top 10 in four categories
3. Louisiana: This state ranks in the 10 worst for two rankings
4. Mississippi: The biggest problem here is that he has the lowest average credit score in the country
5. Alabama: The state has the worst personal bankruptcy rate in the country and is also in the top 10 for credit scores and credit card debt as a percentage of income

Pandemic leaves strong divisions for financial conditions on its way

  • Alabama’s personal bankruptcy rate is more than eight times the rate in Alaska

  • Average credit scores in Minnesota are 62 points higher than the average in Mississippi

  • In South Carolina, the average credit card balance, along with salaries, is twice the District of Columbia average

  • Home in Delaware almost 19 times more likely than home in South Dakota to be foreclosed

  • A worker in Hawaii more than three times more likely than a worker in South Dakota to be unemployed

Barrington said: “No matter where a consumer’s condition is on this list, it is wise to keep a close eye on credit scores and scores.” For those with bad credit, credit cards can help improve poor credit scores when used appropriately. “With the lifting of pandemic restrictions, Americans are starting to travel again. Now might be a good time to consider a travel credit card. If used within the consumer’s means, it could help improve a credit score while racking up rewards. ‘

Methodology
To measure the combined impact on credit conditions, CardRatings.com looked at the following factors:

  • Bankruptcies per capita since early 2020, according to data from the American Bankruptcy Institute

  • Experian’s credit scores

  • Credit card balances as a percentage of average income, based on credit card data from Experian and salary data from the Bureau of Labor Statistics

  • Lockout Data from Attom Data Solutions

  • Bureau of Labor Statistics unemployment rate

About CardRatings
CardRatings is owned and operated by QuinStreet, Inc. (Nasdaq:QNST), a leader in providing performance market technologies and services to the financial and home service industries. QuinStreet is a pioneer in providing online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. CardRatings is a member of QuinStreet’s specialized research and publishing division.

CardRatings has innovated in online credit card ratings and has been offering independent ratings and reviews of credit card offers since 1998. The website collects and maintains data on over 700 credit card offers and carefully compiles objective lists of the best credit cards by card type, making it easy for consumers to find the right card to meet their needs. Subscribe to the bimonthly newsletter here.

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Amy Eury
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