The national VantageScore credit score is up by three points, from 666 to 669. Bankcard lending continues to increase, with new bankcards up 7.7%.
Experian’s annual State of Credit study so found the average number of bankcards per consumer is up 2.8% to 2.24 cards; retail card lending also is on the rise, with a 10.8% increase in new originations; the average number of retail cards per consumer is up 0.3% to 1.55 cards from last year and up by 7% since 2013. Instances of late payments (includes bankcard and retail) decreased by 4.4% over the last year and by 17.3% since the height of the recession in 2010.
The study also provides an in-depth look at more than 100 metropolitan statistical areas (MSAs) across the country and compares average credit scores to see how these cities are faring. As in previous years, Minnesota continues to top the charts with three of its cities — Mankato, Rochester and Minneapolis — leading with credit scores of 706, 705 and 704, respectively. Two cities have moved out of the bottom 10: Bakersfield, Calif., and Columbus, Miss. While still at the bottom of the list with a score of 612, Greenwood, Miss., residents did improve their score by three points, more than any other city in the bottom 10.
Other key highlights about the top and bottom cities:
• Every city in the top 10 increased its average debt, with Rochester, Minn., increasing the most by 5 percent since 2014.
• Mankato, Minn., with its credit score of 706, is the highest in the country and is 37 points higher than the U.S. average of 669.
• All the top 10 cities have revolving utilization lower than 26 percent.
• Of the top 10 cities, Sioux Falls, S.D., had the largest credit score increase (39 percent).
• Shreveport, La., and Monroe, La., are new to the bottom 10 this year.
• Every city in the bottom 10 improved its score over the last year, with the exception of Monroe, La., which remained the same.
• All the cities in the bottom 10 increased their utilization over the last year.
The consumer analysis is based on a statistically relevant sampling of Experian’s consumer credit database and the Q2 Experian-Oliver Wyman Market Intelligence Reports.
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