The differences between credit health in Red and Blue states

Josiah Motley · June 1, 2017 · Short URL:

A new study from LendingTree compares credit scores and credit card debt in the US

Online lending exchange company, LendingTree, has released a new study comparing the credit scores and general credit card debt across the United States in relation to the country's most recent presidential election picks. The data was gathered through over 3 million customers who have "My LendingTree" accounts. So, while this data is far from complete, it does give a good look into the financial health in the US in comparison to their state's voting preferences.

On to some of the insights. So, as we are all well aware, the Republican red states may have earned the most votes in election season, but when we look at overall credit scores, the "blue" states have the advantage by around 20 points. Democratic states had an average credit score of 681, while Republican states are sitting at 665. While it may not be a giant gap, it is still a substantial one when we're talking about credit. Overall, consumers in 28 states have average credit scores that are equal or higher than the national average. It should be noted that overall the average credit score nationwide was 671 - a six point increase over last year.

In addition to having the higher credit scores, the "blue" states also have the highest credit card debt amongst LendingTree customers. The average credit card states in Democrat-voting states is right over $6,700, while Republican-voting states come in right below $5,500. The national average for credit card debt falls right in the middle at approximately $5,936.

While this data is far from complete considering that it only offers insights into people who have used LendingTree, it still offers an interesting look into the differences found between states in relation the their most recent voting habits. 

"The correlation between credit scores and credit card debt illustrates the power and importance of credit health and responsibility," said Doug Lebda, founder and CEO of LendingTree. "When used responsibly, credit cards are a great tool to build credit, and carrying debt doesn't automatically have a negative impact on credit scores. The data also suggests that geography plays a role in consumer spending and how Americans utilize credit. Southern states, for example, tend to carry less overall credit card debt but also have lower credit scores on average when compared to consumers in the northeast. Economic opportunities, cost of living and culture are all factors that contribute to the differences in consumer credit between 'red' and 'blue' states."

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Josiah Motley

Contributor at various blogs, with a focus on tech, apps, gadgets, and gaming.

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