If you’re wondering how you are doing financially, in the face of the pandemic, compared to your neighbors or other Americans in general, your credit score can be a good benchmark.
WalletHub personal finance website compared the TransUnion median credit scores of residents in 2,572 US cities in September to compile a list of the top and bottom performers in terms of creditworthiness.
In general, recent research shows Americans are doing well overall, despite the economic chaos that Covid-19 has wreaked. Thanks largely to federal relief efforts like economic reviews, breaks in repaying student and federal mortgages, and extended unemployment insurance payments, consumers are saving both more money and paying off debts.
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According to WalletHub, debt repayments are at record levels. As a result, credit scores are actually improving across the country. For example, the average national credit score rose to an all-time high of 711 in July, according to FICO, the developer of one of the scores most used by lenders.
The top five cities with the highest median credit scores, according to WalletHub, were:
- The Villages, Florida (807)
- Sun City West, Arizona (789)
- Sun City Center, Florida (789)
- Green Valley, Arizona (788)
- Los Altos, California (784)
The bottom five cities are:
- Camden, New Jersey (552)
- East St. Louis, Illinois (552)
- Chester, Pennsylvania (552)
- Detroit (560)
- Gary, Indiana (561)
Despite all the good news, experts say the full creditworthiness impact of the pandemic may not be known until government aid ends.
“Serious crime rates remain near record lows,” TransUnion’s vice president of research and advice, Matt Komos, told CNBC recently. “However, the performance of these accounts, which are still in the property, will help shape the true picture of consumer credit.”
The full results of the WalletHub study are in Here.