If you are wondering how you are doing financially in the midst of the pandemic compared to your neighbors, or other Americans in general, your credit score may be a good benchmark.
In September, personal finance website WalletHub compared TransUnion’s median credit scores of residents of 2,572 U.S. cities to come up with a list of the best and worst performers for creditworthiness.
In general, recent research shows that Americans, on the whole, are doing well despite the economic devastation caused by Covid-19. Thanks in large part to federal relief efforts such as stimulus checks, breaks on federal student loan and mortgage payments, and extended unemployment insurance payments, consumers are saving more money and paying off their debts. .
More from Personal Finance:
Will unemployment benefits end after one year?
Covid relief bill will not extend deportation ban that expires this month
Elizabeth Warren and Bernie Sanders propose 3% wealth tax to billionaires
In fact, WalletHub claims debt repayment is at record highs. As a result, credit scores are actually improving nationwide. For example, in July, the national average credit score hit a record high of 711, according to FICO, the developer of one of the scores most commonly used by lenders.
The top five cities with the highest median credit scores were, according to WalletHub:
- The Villages, Florida (807)
- Sun City West, Arizona (789)
- Sun City Center, Florida (789)
- Green Valley, Arizona (788)
- Los Altos, California (784)
The last five 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 delinquency levels remain near record lows,” Matt Komos, vice president of research and consulting at TransUnion, recently told CNBC. “However, the performance of these accounts still in hosting will help shape the true image of consumer credit.”
The full results of the WalletHub study are available here.