Despite the “Texas Miracle” and the fact that incomes are above the national median, Texans aren’t doing a good job at maintaining their financial health viagra 100mg filmtabletten bestellen. That is according to a new report from creditcards.com. The above-mentioned incomes are about 2 percent higher than the national median. Since incomes and credit scores are generally correlated, Matt Schulz, creditcards.com’s senior analyst, says Texans’ incomes would lead one to believe that their credit cards would be right in the same range.
Well, they aren’t. Texans have the sixth-worst credit scores in the country. The average score in the state, according to Schulz, is about 20 points lower than we would expect. Schulz blames a couple of things. First, he states Texas’ population is younger than that of the rest of the country.
“Texas, according to the data that we saw, had the fourth youngest average age of its population. When it comes to credit scores that makes an impact because of the five chief criteria in a credit score is length of credit history. So, just by definition almost, it’s easier for somebody who’s 55 to have a higher credit score than somebody who is 25.”
It seems people in Texas are also carrying high balances on their credit cards. “The average credit card balance in Texas is in the top 10 nationally. It’s about $4,700 per card. When you compare those balances to the state income, you can see where Texans might struggle a little bit to be able to pay off that credit card balance,” states Schulz.
Beyond length of credit history, the percentage of one’s available credit being used also highly affects one’s credit score-higher balances equals higher rates of utilization.
As oil prices continue to dip and Texas’ unemployment rate creeps up in areas dependent to the oil industry, more people may lean on their credit cards creating a cycle of declining credit scores.
“Unemployment and job struggles can really have a big impact on your credit score because, if you’re worried about losing your job or if you’ve already lost your job, you may not be able to pay off your credit card balance as fast or you might not be able to make a payment for a month or two while you’re looking for a job,” Schulz says.
The most important thing to remember is that credit scores aren’t complicated. As long as balances are kept low , payments are made on time and credit is applied for cautiously, scores will remain steady or improve.