Spending Within Their Means: Some Cities Do It Better Than Others
Among the 50 ranked metro areas, residents are, on average, using 30 percent of their revolving credit lines — such as credit cards and home equity lines of credit, or HELOCs. They also have mortgage balances averaging 79 percent of their annual income and non-housing debt balances averaging 44 percent of annual income, and have had five credit inquiries in the last two years
Rank |
Metro |
Spending Within Their |
Inquiries (last 2 years) |
Revolving Credit Utilization |
Non-Housing Debt % of Income |
Mortgage Debt % of Income |
1 |
|
71 |
4.0 |
27.6% |
47.3% |
61.6% |
2 |
|
65 |
3.8 |
28.9% |
48.5% |
63.9% |
3 |
|
64 |
5.9 |
28.4% |
42.8% |
65.0% |
4 |
|
64 |
4.0 |
29.0% |
50.5% |
55.2% |
5 |
|
64 |
3.8 |
28.2% |
43.2% |
84.9% |
6 |
|
64 |
7.1 |
28.4% |
39.7% |
65.8% |
7 |
|
63 |
3.9 |
28.9% |
28.4% |
109.1% |
8 |
|
62 |
4.6 |
29.0% |
35.7% |
86.9% |
9 |
|
62 |
4.4 |
30.5% |
34.7% |
77.6% |
10 |
|
61 |
3.8 |
27.6% |
45.2% |
85.6% |
11 |
|
60 |
5.1 |
28.0% |
51.2% |
49.3% |
12 |
|
59 |
4.4 |
27.8% |
43.9% |
80.4% |
13 |
|
58 |
5.5 |
30.0% |
38.1% |
76.8% |
14 |
|
58 |
6.0 |
28.3% |
47.8% |
60.7% |
15 |
|
56 |
3.5 |
30.0% |
40.2% |
90.8% |
16 |
|
56 |
6.8 |
29.4% |
43.3% |
59.8% |
17 |
|
56 |
5.9 |
30.1% |
41.0% |
65.0% |
18 |
|
56 |
6.8 |
28.3% |
43.0% |
68.4% |
19 |
|
55 |
4.0 |
30.1% |
37.1% |
102.8% |
20 |
|
55 |
4.0 |
29.8% |
41.2% |
87.5% |
21 |
|
55 |
3.1 |
29.2% |
39.9% |
108.0% |
22 |
|
53 |
7.7 |
29.0% |
42.8% |
67.0% |
23 |
|
53 |
5.6 |
28.9% |
43.0% |
79.4% |
24 |
|
53 |
4.3 |
30.5% |
39.5% |
83.6% |
25 |
|
53 |
5.6 |
29.2% |
47.3% |
62.5% |
26 |
|
53 |
5.7 |
29.1% |
44.9% |
68.0% |
27 |
|
52 |
6.6 |
28.9% |
49.4% |
58.9% |
28 |
|
52 |
4.9 |
30.0% |
42.5% |
78.2% |
29 |
|
52 |
5.1 |
29.5% |
44.3% |
69.9% |
30 |
|
51 |
6.6 |
28.4% |
46.1% |
68.3% |
31 |
|
51 |
4.3 |
29.2% |
45.0% |
81.2% |
32 |
|
49 |
6.2 |
30.6% |
45.9% |
57.4% |
33 |
|
48 |
4.2 |
30.2% |
39.7% |
98.2% |
34 |
|
46 |
7.2 |
30.1% |
39.5% |
80.1% |
35 |
|
46 |
4.6 |
30.6% |
37.6% |
98.7% |
36 |
|
45 |
5.1 |
29.7% |
51.2% |
64.9% |
37 |
|
43 |
4.2 |
30.8% |
50.8% |
66.9% |
38 |
|
43 |
4.1 |
29.0% |
48.7% |
89.5% |
39 |
|
42 |
6.2 |
29.1% |
47.8% |
70.1% |
40 |
|
42 |
4.4 |
32.0% |
38.5% |
103.2% |
41 |
|
41 |
4.3 |
32.8% |
37.2% |
118.2% |
42 |
|
39 |
4.6 |
32.0% |
38.6% |
108.3% |
43 |
|
39 |
5.3 |
31.4% |
46.8% |
70.3% |
44 |
|
38 |
4.2 |
29.9% |
51.6% |
80.7% |
45 |
|
36 |
3.8 |
33.2% |
46.8% |
95.4% |
46 |
|
31 |
4.3 |
30.7% |
51.0% |
82.1% |
47 |
|
25 |
4.1 |
32.3% |
51.8% |
87.9% |
48 |
|
25 |
5.1 |
30.4% |
48.1% |
102.7% |
49 |
|
20 |
5.1 |
31.8% |
50.6% |
96.6% |
50 |
|
19 |
7.3 |
32.1% |
54.7% |
72.2% |
Not too far from
On the opposite end of the spectrum is
Local residents in
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For more information on the study visit https://www.lendingtree.com/finance/cities-spending-within-their-means/
Methodology
My
The ranking used three metrics to score each metro:
Number of credit inquiries in the last two years (20%): A hard credit inquiry is reported on a consumer credit report when a consumer applies for a credit product or seeks specific rate quotes for some products. This is a measure that shows which metros have residents more actively seeking new credit, which could be a sign households are stretching beyond what their income can support.
Revolving credit utilization (20%): This is current outstanding balances as a percentage of available credit lines, typically on credit cards.
Debt balances vs household income (mortgage and non-housing, 30% each): This gives a measure of how stretched overall residents are with debt. While mortgage debt penalizes homeowners vs renters, we look separately at non-housing debt. Cities that rank high on both non-housing and mortgage debt as a percentage of income are more stretched overall than those who rank high on just one metric.
Each metro was assigned a percentile ranking among the 50 metros analyzed for each of the three metrics, and the three metrics were equally weighted to create a 'Living Within Your
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