If you’re wondering how you’re doing financially in the midst of the pandemic compared to your neighbors or other Americans in general, your credit score may be a good criterion.
The personal finance website WalletHub, in September, compared the average TransUnion credit scores of residents in 2,572 U.S. cities to a list of the best and best artists when it comes to solvency.
Overall, recent research shows that Americans are generally doing well despite the economic havoc caused by Covid-19. Thanks in large part to federal aid efforts, such as stimulus checks, breaks in the repayment 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 repayments are at record levels. As a result, credit scores are really improving across the country. For example, in July the average national credit score rose to an all-time high of 711, according to FICO, the developer of one of the most used scores by lenders.
According to WalletHub, the top five cities with the highest average credit scores were:
- The Villages, Florida (807)
- Sun City West, Arizona (789)
- Sun City Center, Florida (789)
- Green Valley, Arizona (788)
- The Highs, California (784)
Meanwhile, the five lowest 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 impact of the pandemic on credit scores may not be known until government aid ends.
“Serious crime levels remain record lows,” Matt Komos, vice president of research and consulting at TransUnion, said recently. “However, the performance of these accounts that are still maintained in the hosting will help shape the true picture of consumer credit.”
The full results of the WalletHub study are available here.