Credit card debt fell 11% to $6,600 in October compared to the year-ago period but is up 1% since September, according to Credit Karma’s latest U.S. Credit Score Climate report. Credit scores nationally dropped to 661 in October, down five points from October 2010 and two points from a month ago.
“As we head into the holiday season, credit card debt is likely to rise,” says Ken Lin, CEO at CreditKarma.com. “Consumers need to be aware of the correlation between debt and their credit score. Credit card utilization is a major factor in determining a person’s credit score, so carrying a large balance can cause it to decrease.”
The states with the highest scores include: California (660), Massachusetts (679), New Jersey (679) and Minnesota (675). The lowest scores were found in: Mississippi (622), Arkansas (634), Alabama (636) and Louisiana (637).
Thirty-two states increased their credit card debt by 1% or more in October from September. States with the largest increases include: Alaska – up 10% to $8,356; Hawaii – up 6% to $7,497; Minnesota and Rhode Island – up 5% to $6,407 and $6,603; and Massachusetts, Oklahoma and Utah – up 4% to $6,799, $6,438 and $5,978.
In October, the average consumer with an account had:
• $174,788 in home mortgage loans – steady month-over-month
• $47,747 in home equity debt – up one percent month-over-month
• $29,096 in student loans – down three percent month-over-month
Student debt increased the most in Utah ($22,967) at 5%, followed by Maine ($25,158) and Wyoming ($27,043) at 4%. Student loan debt decreased the most in West Virginia ($25,931) at 9%, followed by South Carolina ($27,909) at 8% and Connecticut ($30,465) at 6%.
Each month, the CreditKarma.com 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 before the stated month. This month's report includes a comparison of more than 299,697 CreditKarma.com user scores.
