Consumer Credit Scores Stable In Q1 2010

by News Guy on April 27, 2010

Credit Card Debt Down Less than One-Percent, According to Credit Karma

SAN FRANCISCO, Calif. – April 8, 2010 – Credit Karma (www.creditkarma.com), the consumer’s credit advocate, today released its U.S. Credit Score Climate Report with trend data for Q1 2010. Nationally, credit scores have remained stable in the first quarter of 2010 as consumers have maintained an average credit score of 669 throughout 2010.  Despite the steady scores nationwide, several metropolitan statistical areas (MSAs) have increased or decreased their credit scores by four or five points. These include:

  • Denver – credit scores up four points from 673 to 677
  • Miami – credit scores up five points from 652 to 657
  • Houston – credit scores up five points from 663 to 668
  • Seattle – credit scores down five points from 695 to 690

Along with credit scores, credit card debt amongst consumers with a credit card debt has also remained stable.  In Q1 2010, consumers paid down credit card debt by less than one percent nationally. Consumers in the Philadelphia MSA showed the biggest decrease in credit card debt by paying down 5% of the balance on their credit cards.  Additionally, consumers in the New York City MSA charged the most in Q1, adding 6% to their credit card balances.

In March, the average consumer with an open account had:

  • $8,010 in credit card debt
  • $179,810 in home mortgage loans
  • $52,085 in home equity
  • $14,898 in auto loans
  • $27,456 in student loans

“Credit card utilization and credit scores go hand in hand,” says Ken Lin, CEO of Credit Karma. “Despite the volatility in credit scores in much of 2009, credit scores appear to be stabilizing in 2010 as consumers maintain their finances and avoid adding additional debt.”

Here are some other key findings:

  • Consumers in South Carolina had the biggest increase to their credit scores with credit scores improving by four points in Q1 2010 to 650. Despite the increase, South Carolina is still 19 points below the national average.
  • Consumers in Missouri had the biggest decrease in their credit score.  The average credit score in Missouri is now 657, down 6 points in Q1.
  • Colorado and Hawaii consumers have the highest amount of credit card debt. On average, consumers with a credit card in both states have a balance of more than $9,200.

Methodology

Each month, the Credit Karma U.S. Consumer Credit Score Climate Report compares the current credit scores of its user base with previous scores pulled at least 30 days prior and no more than 90 days prior to the stated month. This month’s report includes a comparison of more than 103,600 Credit Karma user scores.

About Credit Karma

Credit Karma enables consumers to put their credit to work for their overall financial health. Credit Karma’s goal is to help its more than 1 million users realize the everyday cost savings of having a good credit score by providing a range of tools and resources to help consumers improve their financial situation. For more information, visit www.creditkarma.com.

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