Holiday shopping is in full swing and many consumers may be turning to retail credit cards to get those special gifts.
A recent study by Experian showed Texans carry the highest average amount of retail credit-card debt.
In Texas, the average amount of store credit-card debt was $1,470 for the second quarter of 2019.
By metro area, Corpus Christi, Texas came in second in the country for highest average retail card balance. Corpus came in just a few dollars less ($1,713) than the highest which was Fayetteville, N.C. ($1,753).
The Corpus Christi metro area’s average retail card balance went up more than four percent from the previous year ($1,646 in 2018).
Decatur, Alabama, saw the largest year-over-year spending with an increase of 12.7 percent and Jackson, Mississippi, had the largest decrease in spending at nearly 6 percent.
There were 332 metro areas that saw an increase in retail card spending and 41 areas that had a decrease.
La Crosse, Wisconsin-Minnesota, had the lowest average balance for a metro area at $650.
All states saw an increase in retail credit card spending with an average increase of five percent over 2018.
Hawaii had the lowest average retail card balance at $799.
Middle-income people – those with an annual income of $25,000-$50,000 – were the highest percentage of people with retail credit cards.
By generation, Baby Boomers (ages 55-73) and Generation X’ers (39-54) accounted for about 60 percent of people with a retail credit card.
The average FICO credit score in the U.S. is 703.
For consumers who only have a store credit card, their average FICO score is just 575 – which is considered “subprime.”
Consumers who have retail and other credit cards have an average FICO score of 728.
Experian said having a retail credit card is not a reason for consumers to have a low credit score, rather retail-store cards are often the first credit cards approved for those new to credit or with lower scores.
Retail credit cards are useful for particularly brand-loyal customers or those who may not be able to get approved for another credit card.
In the second quarter of 2019, retail card balances in the U.S. totaled $90 billion – a seven-percent increase from five years ago, but a two-percent decrease from the same quarter in 2018.
The largest increase in retail credit usage was seen in consumers with FICO scores of “very poor” (300-579). This population saw retail credit balances grow by 27 percent in the past five years.
Currently about 39 percent of Americans have a retail credit card. Average balances are increasing the most for people in their 20s, who saw a year-over-year balance increase of more than 12 percent.
See the full Experian article here.
Claire Kowalick, a senior journalist for the Times Record News, covers local government, military and MSU Texas. If you have a news tip, contact Claire at ckowalick@gannett.com.
Twitter: @KowalickNews
"card" - Google News
December 09, 2019 at 09:57PM
https://ift.tt/2YtMEQw
Study: Texans carry highest retail credit-card balances - Times Record News
"card" - Google News
https://ift.tt/33FwZiF
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Study: Texans carry highest retail credit-card balances - Times Record News"
Post a Comment