If you are wondering how much you are doing financially in the midst of the pandemic compared to your neighbors, or other Americans in general, your credit score could be a good benchmark.
Personal finance site WalletHub in September compared average TransUnion credit scores for residents of 2,572 US cities to come up with a list of the highest and lowest performers when it comes to creditworthiness.
generally, Recent research shows Americans, in general, are doing well despite the economic havoc wrought by Covid-19. Thanks largely to federal relief efforts such as stimulus checks, temporary pauses in payments of federal student loans and mortgages, and extended unemployment insurance payments, consumers save more money and pay off debt.
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In fact, WalletHub says debt payments are at record levels. As a result, credit scores are already improving nationally. For example, the average national credit score in July rose to an all-time high of 711, according to the FICO, the developer of one of the scores most used by lenders.
According to WalletHub, the top five cities with the highest average credit scores were:
- Villages, Florida (807)
- Sun City West, Arizona (789)
- Sun City Center, Florida (789)
- Green Canyon, Arizona (788)
- Los Altos, California (784)
Meanwhile, the bottom five cities are:
- Camden, New Jersey (552)
- East St. Louis, Illinois (552)
- Chester, Pennsylvania (552)
- Detroit (560)
- Gary, Indiana (561)
With all the good news, experts say the full impact of the pandemic on credit scores may not be known until government aid ends.
“Serious lag levels remain near record lows,” Matt Comos, Vice President of Research and Consulting at TransUnion, told CNBC recently. “Nevertheless, the performance of these still-in-residence accounts will help shape the true picture of consumer credit.”
The full results from the WalletHub study are available Here.