Beverly Harzog, US News and World Report credit card expert, discusses the best post-pandemic credit cards.
Although Americans face many challenges as a result of the coronavirus pandemic, consumers are said to be managing their credit quite well, which is surprising.
Experian, which recently completed its 12th annual credit report, found that average U.S. credit scores rose seven points since 2020 to reach 695, the highest point in more than 13 years. .
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The report explained that many consumers were managing their credit relatively well before the pandemic hit. With the addition of the CARES (Coronavirus Aid, Relief and Economic Security Act) law, consumers still seemed to be in good shape in terms of financial well-being.
It should also be noted that many Americans were ordered to stay at home at the start of the pandemic, resulting in record savings levels and lower levels of total and unsecured debt, as well as Lower credit utilization rates and fewer missed payments.
This year, Experian partnered with Operation Hope, the nation’s largest nonprofit dedicated to improving financial literacy, to launch the first HOPE Financial Wellbeing Index. The index aims to highlight the average credit score in each state and city.
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“We believe that credit education plays an important role in fostering financial inclusion and helping consumers reach their full potential,†said Alex Lintner, president of Experian Consumer Information Services.
Here are the states with the highest average credit scores.
Minnesota – 726
North America, USA, Minnesota, Minneapolis Skyline from Walker Art Center. (Education Images / Universal Images Group via Getty Images / Getty Images)
Vermont – 719
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New Hampshire – 718
A hiker made his way along rocks at Artists Bluff in the White Mountains of New Hampshire in Franconia, New Hampshire on April 28, 2021. (Jessica Rinaldi / The Boston Globe via Getty Images)
Washington – 717
A general view of the Seattle skyline and Mount Rainier from Kerry Park during the 2019 Seattle Rock’n’Roll Half Marathon and Half Marathon on June 9, 2019 in Seattle, Washington. (Donald Miralle / Getty Images for Rock’n’Roll Marathon / Getty Images)
Massachusetts – 716
A general view of the Boston skyline is seen October 26, 2019 in Boston, Massachusetts. (Paul Marotta / Getty Images / Getty Images)
Here are the states with the lowest.
Mississippi – 666
Casino Boat on the Mississippi River, Natchez, Mississippi. (Carol M. Highsmith / Buyenlarge / Getty Images / Getty Images)
Louisiana – 669
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Alabama – 672
Scenic Magnolia River that leads to the Gulf of Mexico in southern Alabama, Magnolia Springs, Alabama. (Jumping Rocks Group / Universal Images via Getty Images / Getty Images)
Oklahoma – 672
Skyline of Oklahoma City, Oklahoma. (Visions of America / Universal Images Group via Getty Images / Getty Images)
Texas – 673
Flowers tower over the Chiso Basin on October 16, 2016 in Big Bend National Park, West Texas. Big Bend is a rugged, vast, and isolated region along the US-Mexico border and includes Big Bend National Park. (John Moore / Getty Images / Getty Images)
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In addition to each state’s average credit scores, the credit report also found that scores improved year over year for each generation, due to declining usage rates. and fewer missed payments.
Credit utilization rates have declined for every generation except Gen Z, which has seen rates rise year over year. Likewise, credit card balances have also increased for Gen Z by $ 115 year-over-year, despite decreasing for all other generations.
Generation Z is the last generation, born between 1997 and 2012. They are currently between 6 and 24 years old.
Overall, consumers miss fewer payments, with significant improvements among the younger generations.
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“While these results are positive, we recognize that they don’t tell the whole story and that many consumers face financial hurdles due to a limited credit history,†Lintner said.
Additionally, many individuals and communities struggle with financial literacy issues due to a lack of education and resources.
As we slowly begin to recover from the pandemic and overcome the challenges of the past year and a half, the current state of consumer credit is critical.
Fortunately, Operation Hope seeks to find solutions for consumers, striving to improve their financial health and literacy and helping them manage their credit scores in order to position them well financially.
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“By helping people improve their credit scores, we are empowering them to take advantage of one of the most democratic tools in our country. From housing and employment to health care and education, creditworthiness can be harnessed to improve our overall quality of life.
“We are committed to using the HOPE Financial Well-Being Index as a force for good in the communities we serve,” concluded John Hope Bryant, Founder and CEO of Operation HOPE.
