U.S. consumers average credit scores dropped two points to 667 since January 2010, as credit card debt fell by 9% to $7,200 in the same period, according to data Credit Karma released Thursday.
Consumers in six metropolitan statistical areas (MSAs) had a credit score decrease greater than the national average including: Chicago, Houston and Seattle, down three points; New York, down four points; and Los Angeles and Philadelphia, down five points.
Ken Lin, CEO at Credit Karma, the San Francisco-based company that tracks scores and household debt through its Web site, CreditKarma.com, says the fact the average national credit score dropped only slightly shows that “consumers are making efforts to take control of their debt. The data suggests if consumers maintain this path of financial responsibility, the downward trend for credit scores will continue to slow and ultimately will begin to increase again.”
Massachusetts has the highest credit score nationally, averaging 685. Seven states continue to have fair to poor credit scores of 650 or lower – including Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma and South Carolina. Mississippi ranked lowest at 631.
Consumers in only two states increased their card debt since January 2010 – including New Mexico, up 3%, and North Dakota, up 2%.
Along with the 9% drop in credit card debt since January 2010, the average consumer with an account: decreased home mortgage loans 4% to $173,967; decreased home equity 5% to $49,469; increased auto loans 3% to $15,140; and increased student loans 9% to $28,715.
CreditKarma.com's 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. The January 2011 report includes a comparison of more than 157,588 CreditKarma.com user scores.
