Credit scores in America hit almost rock bottom during the latest economic crisis. The year 2012 has come to an end and the real estate industry still looks dreary and grim. There is a slight improvement, albeit slightly and slowly. Still, there are some cities that lack a fair credit score, especially those that have been hit hard by the credit crisis. Is your city one of those that still have the lowest credit score? Find out.
10. Shreveport, Louisiana
Shreveport’s low credit score is mainly due to its late payment of debts rate, which is at 0.6 in 2011. The city also has serious poverty issues with a median household income of $35,219, which is $15,000 lower than the national income rate. It also did not help that the average debt is pretty high at $23,607.
9. Bakersfield, California
Bakersfield has a credit score situation as Las Vegas. It has a significantly high unemployment rate at 14.4% and foreclosure rate at 1 in 1579. What’s more, its late payment rate is one of the worst in the country at 0.62 in 2011.
8. Corpus Christi, Texas
Corpus Christi has an average unemployment rate of 8.2%. On top of that, it has a foreclosure rate of 1 in 1,157. Although late payment of debts has dropped by 14%, it still has one of the worst average debts in the country at $24,289. It cannot be compensated by the slightly higher median household income than the rest in the list, which is at $42,594.
7. Jackson, Mississippi
Jackson is another city that has a median household income, which could not compensate the average debt. The income is about $33,505 and the average debt is $25,588. The debt has increased by 0.6% since 2010. The low credit score is even furthered by an unemployment rate hitting 7.6%.
6. Monroe, Louisiana
Although the difference between the average debt and the median household income of Monroe is only about $6,000, it cannot be denied that the income is way lower than the national average at $29,158. The unemployment rate is also pretty high at 10.2%. If there is any ray of hope that things will improve in the coming years, it is the fact that the average debt of $23,760 has decreased by 5.5% since 2010.
5. Augusta, Georgia
Augusta’s credit score remained unchanged from last year. However, its average debt of $26,204 is still one of the highest in the country. It does not help that the city’s median household income is about $14,000 lower than the national average at only $36,823. Slowly, the situation is improving as the non-mortgage debts have decreased by 2.2% for this year.
4. Tyler, Texas
This is another Texan city that has a credit score in jeopardy. With a median household income of $40,829, the city is finding it difficult to pay off debts on a timely basis, especially as it has reached the $24,975 level. Add to that is the fact that the unemployment rate of 8.3% and foreclosure rate of 1 in 4,196 do not make it any easier.
3. Las Vegas, Nevada
One of the worst things that drove Las Vegas to be a city in this list is its foreclosure rate. About 1 in every 115 houses was foreclosed in August of 2011 alone. That is much, much higher than the national rate of 1 in every 570. Unemployment is also at its worst state. At 14.5%, this is one of the highest unemployment rates in the United States.
2. Harlingen, Texas
The credit score in Southern Texas is terrible. This is further proven by the fact that another Texan city is in our list. Just like El Paso, Harlingen has an average debt of $25,074, which is way higher than the median household income that averages at $22,316. This average debt went up by as much as 6.8% since 2008. Plus, there is also the problem with unemployment, which hits the rating scale at 12.5%.
1. El Paso, Texas
El Paso has a pretty large average debt. On top of that, it also has a low median household income, about $15,000 lower than the average national income. Unemployment is also prevalent. The rate is about 1.5% higher than the national unemployment rate. Between 20007 and 2011, the average number of credit cards used per person in El Paso dramatically dropped from 3.77 to 1.54. That explains why it garnered the top spot.