LAS VEGAS (KLAS) — Nevada has the highest credit card delinquency rate in the nation as inflation puts more pressure on household budgets.
With an average of $3,350 in credit card debt per person, Nevada’s 90-day delinquency rate climbed to 12% by the end of 2021. Since then consumers have seen skyrocketing costs for everyday expenses including groceries and gasoline.
The average delinquency rate nationwide was 8.22%, according to a new study of data from the Federal Reserve Bank of New York and Experian. Florida and Arkansas also had double-digit delinquency rates.
Nevada's average credit card debt per person ($3,350) was 10th-highest, with Alaska ($4,070), Hawaii ($3,750) and New Jersey ($3,700) topping the list.
Credit problems were bigger in Nevada than in other states during the pandemic. Layoffs hit workers hard in the tourism industry as resorts closed, and reopened with leaner staffing.
Nationwide, many households weathered the early phases of the pandemic and savings actually grew. Stimulus checks, expanded unemployment benefits and loan relief took pressure off household finances. Consumers were spending less, too, and shoppers began adapting to buying online and getting things delivered.
Credit card balances in the U.S. declined by more than $120 billion in 2020 and another $28 billion from December 2020 to April 2021.
With the amount of credit card debt rising again, cardholders are also at risk of falling behind on payments. The share of credit card debt in serious delinquency remains at historically low levels after declining across 2020 and 2021. But after two straight years of decline, the percentage of newly delinquent credit card debt rose in the first two quarters of 2022, from 4.1% at the end of last year to 4.76% today, according to the study.
The study was published today by Upgraded Points, a website that examines the value of points earned in travel reward programs. See the full study: States With the Highest (And Lowest) Credit Card Delinquency Rates.
The delinquency rate has grown fast in Nevada since before the pandemic. Only Alaska and Georgia have seen faster growth.
The average credit score in Nevada is 701, according to the study, placing the state at 39th in the nation, tied with Tennessee. Mississippi was worst at 681, and Minnesota had the highest average credit score at 742.