Drop in credit card debt and credit scores

The average credit scores of consumers dropped across the country by a point while credit card debt dropped too by as much as 8%, to touch an average debt of 7404 dollars as per credit data released recently. The average credit score of consumers across the country was around 668, dropping one point from the number in January 2010. Although up by 2 points when compared to the numbers in October 2010, according to a company that keeps track of the credit scores of customers and the overall credit card debt incurred by households in the US. In fact, credit scores were seen to have stabilized a bit towards the end of the year, even though quite a few customers made a lot of effort to ensure they get rid of, as much credit card debt as possible.

If the consumers continue to take steps in the right direction, the way they are at the present moment, it is expected to do wonders to the credit scores overall in the new year. During last year, consumers across 6 areas including NY City, Chicago, LA, San Francisco, Houston and Philadelphia saw the average credit scores declining with SF and LA witnessing a drop of 3 points while Philadelphia witnessed a 4 point drop in the average credit scores.

This indicates to certain payment patterns and credit card usage patterns as far as customers are concerned. In some areas, the customers were paying of their credit card debt quite fast while in some areas it isn’t the case. For example, the average drop in credit card debt was 11% while it was as high as 31% in Wisconsin since January of 2010. The card debt dropped by 11% in various other states, including California, Indiana, Tennessee and Connecticut. Across the country, the highest credit scores of customers were recorded in the states of Massachusetts and New Jersey, where the credit scores were hovering around 686, quite a big margin over the national average. On the other hand, the average credit scores were as low as 641 in Arkansas, the lowest in the country. There were 6 states where the average credit score was less than 650. These states include Alabama, Kentucky, Arkansas, Oklahoma, Louisiana and South Carolina. The biggest increase in credit scores though was in the state of Louisiana.

Jennifer Brown

Jennifer Brown, an external business consultant working with a Fortune 500 company, has years of experience to her credit. Despite having a busy schedule through the day, she takes time out to write articles dealing with credit cards, payday loans and other financial aspects. She has completed her Bachelor degree in Financial Services from Columbia University and has been actively involved in various activities for the betterment of society.