US Credit Card Debt by Income
35. Americans who earn less than $25,000 have an average debt of $3,000, while those with the highest credit score (with an income over $160,000) owe $11,200 on average.
(Federal Reserve, Lexington Law)
In other words, people with a yearly salary of up to $24,999 have a credit card debt ranging from 12% to 100% of their income. For Americans who earn between $115,000 and $159,999, this percentage ranges from 7.2% to 5.2%.
36. About 29% of credit card users usually make minimum or low debt payments on a monthly basis.
(National Bureau of Economic Research)
People with incomes over $150,000 are the most likely to pay their credit card balance in full, but they still make minimum or low payments 38% of the time. Those who earn less than $50,000 annually make low payments 50% of the time.
37. There were around 364 million open credit card accounts in the United States as of December 2017.
(American Bankers Association)
This was a 4.1% increase from the previous year. Super prime clients held 185 million accounts, prime clients had 104 million accounts, while subprime users had 75 million.
38. The average credit score in the United States is 704.
According to FICO, a renowned data analytics company which offers credit scores ranging from 300 to 850, Americans have a sustainable credit score. The credit score has an influence on determining the interest rate for credit cards, mortgages, and loans.
39. In 2017, the average VantageScore was 675.
VantageScore is a product of collaboration between the major U.S. credit reporting agencies: Equifax, TransUnion, and Experian. The number is obtained using the same criteria as for a FICO credit score. This involves analyzing the consumer’s payment history, length of credit, types of credit, credit usage, and recent inquiries.
In contrast to FICO credit score, which requires at least six months of credit history, VantageScore requires only a month of history and one account open within the past two years. Therefore, the latter is suitable for millions of U.S. consumers who want to prove their trustworthiness before FICO has enough data to issue them a credit score.
Just like FICO, VantageScore credit scores range from 300 to 850.
40. Here’s another illustration of the average household income in the States: The percentage of consumers with an excellent credit score (between 800-850) is 20.7%.
(The Motley Fool)
The majority of Americans have good to excellent credit scores. The percentage of the population with credit scores below 600 has dropped from more than 25% in 2009 to less than 20% today.
41. U.S. consumers are relatively comfortable when it comes to servicing their debts in 2019.
(Federal Reserve Bank of New York)
According to a survey carried out by the U.S. Federal Reserve, there’s only a 10.72% chance that consumers will miss a loan payment in the next three months. This is the lowest result since the beginning of the survey, back in 2013.
Credit Card Debt by U.S. State
42. Alaska is the US state with the highest average amount of credit card debt: $7,726 in the first quarter of 2019.
It’s followed by New Jersey ($6,881), Connecticut ($6,876), the District of Columbia ($6,782), and Virginia ($6,773).
43. Iowa has the lowest average credit card debt among U.S. states ($4,622).
According to data from Q1 2019, Iowa is followed by Wisconsin ($4,810), Kentucky ($5,017), South Dakota ($5,023), and Idaho ($5,027).
44. Currently, the U.S. state with the highest credit card delinquency rate is Mississippi (3.14%).
(Lexington Law, TransUnion)
Mississippi is followed by Louisiana (2.46%), Arkansas (2.41%), Georgia (2.37%), and West Virginia (2.28). These states have a 16% higher delinquency rate than the national average.
45. The U.S. states with the lowest credit card delinquency rates are over 64% lower than the national average.
(Lexington Law, TransUnion)
The state with the lowest credit card delinquency rate is Wisconsin (1.11%), followed by Washington (1.12%), Utah (1.14%), Minnesota (1.15%), and Montana (1.19%).
Make Good on Debts
As you can see, American credit card debt statistics indicate some worrying trends. For the wellbeing of your household, you should always spend responsibly and keep a record of the debts on each of your credit cards. Put everything on paper and create a repayment plan that’s realistic for your budget. This will help you decide whether to repay the debt with the highest balance or with the highest interest rate first. And, most importantly, try to pay your debts on time, both to improve your credit history and reduce the interest you end up paying.
American Bankers Association
BMO Harris Bank
Consumer Financial Protection Bureau
Federal Reserve Bank of Boston
Federal Reserve Bank of New York
Federal Reserve Bank of San Francisco
Federal Reserve Bank of St. Louis
National Bureau of Economic Research
National Foundation for Credit Counseling
The Motley Fool
The Nilson Report