August 10, 2010
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News: Geographic's Of Credit Card Use
A recent study conducted by one of the top three credit reporting bureaus, Experian indicates that some major cities are having a more difficult time than others reducing credit card debt. At the top of the list are New Yorkers who carry the highest average number of credit cards of 3.77 cards per resident. The average overall debt that New Yorkers are carrying is $5,713. Although New York City residents rank number one on the list for number of cards, the study indicates that they don't actually use them more; Atlanta's residents have an average card debt of $6,753 while Seattle's is $6,577. Coming in second with the highest average number of credit cards was Pittsburg. The average number of cards held by Pittsburg residents is 3.6 with an average balance of $5,989.
The study which takes a look the top 20 major U.S. cities shows that overall Americans have become savvier with credit cards as 26 percent fewer accounts were opened than three years ago. Experian's report also discovered that overall Americans have more bank cards rather than retailer co-branded credit cards such as Target. There were, however, four cities that were the exception. Those were Pittsburg, Miami, Atlanta, and Columbus, Ohio. Store branded cards typically have higher interest rates than bank cards; something that residents of these four cities might find interesting.
At the bottom of the list was Phoenix where residents hold an average of 2.78 opened credit cards per resident. Also at the bottom of the list was San Francisco and Houston who have the lowest average card debt. San Francisco residents are carrying an average of $5,323 in card debt while Houston residents are running a very close second at $5,328 per resident. Overall, Americans continue to do a better job at reducing card debt as lenders continue to deal with high card defaults and the nation struggles with high unemployment. Experts believe that although the recession has come to an end, it will take the nation several months before it begins to have any significant recovery.