Home > Managing Debt > The States With the Least Credit Card Debt

Comments 0 Comments

Midwestern states have some of the lowest costs of living in the U.S., so it makes sense that most of the states with the least credit card debt are in that region. At the same time, consumers who live in states with low costs of living tend to have lower credit limits — when it comes to credit card debt, the debt-to-limit proportion is much more telling than the sheer value of credit card balances.

North Dakotans lead the country on both accounts. The state has the lowest average credit card balance and lowest average credit utilization, according to second quarter data from the Experian-Olivery Wyman Market Intelligence Reports. Using Experian’s IntelliView tool, we sorted average credit card balances and credit limits of the 50 states plus D.C., and North Dakota came out on top. It’s the only state with an average credit utilization lower than 18%.

North Dakota isn’t the least expensive state in the country, but it’s about average — the Missouri Economic Research and Information Center’s second-quarter cost of living index lists Mississippi as the cheapest. The thriving economy certainly helps debt levels in the state, as it has throughout the oil boom of the last few years. Here’s how other low-debt states compared to North Dakota’s impressive stats, ranked by average credit card balance.

10. Wisconsin
Average credit card balance: $1,473
Average credit limit: $8,129 (18.11% utilization)
Cost of living index (100 points is the national average): 97.5

9. Indiana
Average credit card balance: $1,471
Average credit limit: $7,252 (20.29%)
Cost of living index: 90.9

8. Pennsylvania
Average credit card balance: $1,469
Average credit limit: $7,724 (19.01%)
Cost of living index: 101.9

7. Kentucky
Average credit card balance: $1,454
Average credit limit: $7,072 (20.55%)
Cost of living index: 92

6. Florida
Average credit card balance: $1,447
Average credit limit: $7,142 (20.26%)
Cost of living index: 99.8

5. Ohio
Average credit card balance: $1,445
Average credit limit: $7,430 (19.45%)
Cost of living index: 94.3

4. Michigan
Average credit card balance: $1,438
Average credit limit: $7,400 (19.44%)
Cost of living index: 92.1

3. Iowa
Average credit card balance:$1,411
Average credit limit: $7,804 (18.08%)
Cost of living index: 92.8

2. New York
Average credit card balance: $1,398
Average credit limit: $7,354 (19.01%)
Cost of living index: 131.8

1. North Dakota
Average credit card balance: $1,366
Average credit limit: $7,725 (17.68%)
Cost of living index: 101.4

The standout on this list is New York, because it’s generally not a cheap place to live. Just the more expensive parts of the state skew the cost of living index higher, it would make sense for the credit card spending of consumers living in those pricey areas to skew debt levels higher, but that’s not the case. This data actually makes New Yorkers look exceptionally responsible with money.

Regardless of where you live, credit card debt can be one of the most difficult things to tackle when trying to repair your credit: Having a high balance on your cards will hurt your credit score, and it can be extremely challenging to break the spending habits that got you into debt in the first place. Having a poor credit score won’t make you a credit exile — for instance, there are some credit cards for people with bad credit — but it can make your finances more challenging. One of the best ways to improve your credit while tackling debt is to prioritize making payments on time and reducing spending, so you can chip away at your credit card debt rather than add to it. To see how your credit card spending affects your credit score and how you can improve it, you can check two of your credit scores for free on Credit.com.

More on Credit Cards:

Image: Ingram Publishing

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team