Credit Karma (www.creditkarma.com), the consumer’s advocate for demystifying credit, today released its U.S. Credit Score Climate Report with trend data for August 2009. Credit scores continue to level off and remain stable for many consumers. 37% of consumer credit scores have increased, 29% have decreased, and 34% remained the same. The current average U.S. consumer credit score is 673.
In addition, consumer credit card debt continues to decrease. Amongst consumers with a credit card account, credit card debt decreased by $43 in August. In addition, after three months of relative consistency, 45-64 year olds are beginning to pay down credit card debt. During June and July, this age group had more than $10,200 in credit card debt. In August, 45-64 year olds with a credit card account had just over $9,530 in credit card debt. In August, the average consumer with an open account had:
- $6,775 in credit card debt
- $195,386 in home mortgage loans
- $54,642 in home equity
- $14,439 in auto loans
- $26,080 in student loans
Here are some other key findings:
- The Midwest had the highest percentage of increasing credit scores with 39% of consumers seeing their credit score increase during August compared to 29% of credit scores decreasing and 32% staying the same.
- Chicago led Metropolitan Statistical Areas (MSA’s) with the highest percentage of increasing credit scores. During August, 40% of Chicago consumers saw their credit score increase; 29% saw their credit scores decrease; and 31% remained the same.
- The Denver MSA had the highest percentage of credit scores decreasing with 34% of Denver consumers noticing a drop in their credit score. During the same time period, 35% of Denver consumers saw an increase in their credit scores and 31% remained the same.
Methodology
Each month, the Credit Karma U.S. Consumer Credit Score Climate Report compares the current credit scores of its user base with previous scores pulled at least 30 days prior and no more than 90 days prior to the stated month. This month’s report includes a comparison of more than 55,000 Credit Karma user scores.
About Credit Karma
Credit Karma is a San Francisco-based, pro-consumer site that provides consumers free access to their credit scores plus a range of tools and information resources to help them monitor and manage the credit aspect of their financial health. The service has delivered more than 850,000 free credit scores and counts more than 250,000 registered members. Credit Karma works with a range of partners, including mortgage lenders, credit card providers, banks, and wireless providers. For more information, visit www.creditkarma.com.