A recent study by WalletHub, a personal finance website, found Iowa leads the nation for the smallest decreases in credit card delinquency. The company analyzed proprietary user data on consumer delinquency rates between the third quarter of 2022 and the third quarter of 2023 to create its rankings. That data found Iowa was the state where credit card delinquencies were increasing the least, with a 12.71 percent drop to 12.85 percent in Q3 2023. Iowa was the only state to see a decrease. Our state was followed by Montana, which recorded a 28.87 percent jump to 16.09 percent, followed by Alabama, which increased by 29.64 percent to 30.54 percent of credit card tradelines delinquent. Oregon saw the most significant increase, jumping 51.09 percent to 16.62 percent. Wyoming took second with a 49.74 percent rise to 18.12 percent, then Alaska, climbing 48.88 percent to 15.56 percent. The study’s authors note some credit card delinquency is expected, but increasing rates can indicate a struggling economy, as Americans use their credit cards more frequently to cover budget shortfalls. According to WalletHub, delinquent accounts can damage credit scores, especially longstanding ones. They encourage individuals struggling to make credit card payments to create a realistic budget, monitor spending, set up automatic payments, and communicate with creditors to avoid delinquency. Read the full report included below.
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