Oakland (Special to ZennieReport.com) – If anyone needs an indicator of where San Francisco’s consumer economy is, today, this snapshot presents a sad picture. A city once known for consumer spending at trendy restaurants, and the young rich of the tech age is now showing that those days are in the past, for now. The WalletHub study sent to Zennie62Media, Inc. reveals that SF is now known for Credit Card Delinquency.
And Oakland is ranked 51st and behind a slew of California cities that starts with Irvine well behind San Francisco. But what’s the study about?
With the number of delinquent credit card accounts increasing by as much as 85% in some cities over the past year, the personal-finance website WalletHub today released its new report on the Cities Where Credit Card Delinquency Is Increasing the Most, to highlight where people are struggling the most.
Credit card delinquency can deal a big blow to your credit score and make it more difficult to get approved for new credit in the future. All cities have some residents behind on credit card payments, but the delinquency rate is increasing in some cities much more quickly than in others, which may indicate that the city’s economy is in trouble. To highlight the cities where people are having the biggest issues paying their credit card bills, as well as the places where borrowers are more on track, WalletHub analyzed proprietary user data for Q1 2023 to Q1 2024.
“If you miss a credit card payment, don’t panic! Your issuer won’t report you as delinquent to the credit bureaus until you’re 30 days late. You’ll still have to deal with any late fee or penalty rate consequences your issuer decides to implement, but if you can manage to get current before 30 days are up, you can avoid a big credit score hit. In addition, if you’re unable to make payment due to financial difficulty, you can always ask if your issuer has a hardship plan that may allow you to skip payments, avoid fees or get a lower interest rate temporarily.”
John Kiernan, WalletHub Editor
You can check out some key findings below.
| Increasing the Most | I |
| 1. Chula Vista, CA 2. Madison, WI 3. Garland, TX 4. San Francisco, CA 5. Lincoln, NE 6. Hialeah, FL 7. Honolulu, HI 8. Aurora, CO 9. Portland, OR 10. Laredo, TX Increasing the Least 91. Richmond, VA 92. Minneapolis, MN 93. Norfolk, VA 94. Baton Rouge, LA 95. Memphis, TN 96. Fort Wayne, IN 97. Tulsa, OK 98. Detroit, MI 99. Washington, DC 100. Des Moines, IA |
Chula Vista, CA
Credit card delinquency is increasing the most in Chula Vista, CA, as the city’s residents were delinquent on nearly 85% more credit card tradelines in Q1 2024 than Q1 2023.
One reason why Chula Vista’s delinquency rate is increasing so much is that its residents are simply borrowing more. Residents of Chula Vista added the sixth-most credit card debt over the past year, along with the second-highest overall balance. Consequently, many people find it hard to pay their bills.
Madison, WI
Madison, WI, had the second-highest increase in credit card delinquency in the past year. Residents were behind on payments for nearly 84% more credit cards in Q1 2024 compared to Q1 2023.
Interestingly, Madison residents are struggling to pay their credit card bills despite having a relatively low amount of credit card debt and a low year-over-year increase compared to most other major cities. Considering that Madison residents generally have good budgeting skills, perhaps the issue is mostly people who were already delinquent becoming delinquent on additional cards.
Garland, TX
The number of delinquent credit card accounts in Garland, TX, increased by around 83% between Q1 2023 and Q1 2024, which ranks third nationally.
Garland residents had the 24th-highest year-over-year credit card debt increase out of more than 180 cities, so that could be one of the reasons for the increased delinquency rate. But it’s not just credit card delinquency that residents are struggling with – Garland has the 18th-highest delinquency rate for all types of debt combined.
Tips for Avoiding Delinquency on Credit Cards
Create a Realistic Budget: Come up with a budget that outlines your income, expenses, and debt obligations. Ensure your spending is below your earnings, leaving room for essential expenses and debt payments, as well as saving and investing, if possible.
Monitor Your Spending: Regularly review your credit card statements to track your spending. Identify any unnecessary or frivolous expenses and adjust your budget accordingly.
Set up Automatic Payments: Schedule automatic payments for at least the minimum amount due on your credit cards. This reduces the risk of missing a payment deadline.
Build an Emergency Fund: Establish an emergency fund to cover unexpected expenses, so you don’t have to rely on credit cards for unforeseen costs. Plus, you can always use money from your emergency fund for a credit card payment to avoid delinquency.
Communicate with Creditors: If you’re facing financial challenges, communicate with your creditors early. They may offer temporary solutions, such as a modified payment plan, to help you avoid delinquency.
Get Back on Track After Missed Payments: If you miss a payment, try to fix things before 30 days pass. Getting back on track within this window can save you from being labeled as delinquent on your credit report. You might still face a late fee, though.
Methodology
In order to determine the cities most delinquent on credit cards, WalletHub compared the 100 largest cities for which we could obtain a complete data set using proprietary user data on consumer delinquency rates between Q1 2023 and Q1 2024.
Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.
Sources: Data used to create this ranking were collected as of June 5, 2024 from WalletHub database.
Cities Where Credit Card Delinquency Is Increasing the Most
| Overall Rank* | City | Share of Average Number of Credit Card Tradelines Delinquent in Q1 2024 | Change in Average Number of Credit Card Tradelines Delinquent (Q1 2024 vs. Q1 2023) |
|---|---|---|---|
| 1 | Chula Vista, CA | 17.48% | 84.81% |
| 2 | Madison, WI | 15.68% | 83.85% |
| 3 | Garland, TX | 19.38% | 83.28% |
| 4 | San Francisco, CA | 13.77% | 78.94% |
| 5 | Lincoln, NE | 20.29% | 74.66% |
| 6 | Hialeah, FL | 15.74% | 69.19% |
| 7 | Honolulu, HI | 14.63% | 67.50% |
| 8 | Aurora, CO | 20.35% | 66.84% |
| 9 | Portland, OR | 17.39% | 66.53% |
| 10 | Laredo, TX | 21.99% | 66.37% |
| 11 | Irvine, CA | 19.04% | 65.30% |
| 12 | Santa Ana, CA | 17.60% | 64.82% |
| 13 | Wichita, KS | 20.05% | 62.60% |
| 14 | Jersey City, NJ | 18.96% | 62.53% |
| 15 | Albuquerque, NM | 19.84% | 62.05% |
| 16 | Gilbert, AZ | 16.55% | 62.01% |
| 17 | Chandler, AZ | 18.36% | 61.51% |
| 18 | Tampa, FL | 18.27% | 61.12% |
| 19 | Henderson, NV | 17.41% | 60.87% |
| 20 | Seattle, WA | 12.37% | 60.66% |
| 21 | Miami, FL | 14.36% | 60.50% |
| 22 | Austin, TX | 16.24% | 60.45% |
| 23 | Scottsdale, AZ | 12.47% | 60.17% |
| 24 | Milwaukee, WI | 21.39% | 59.88% |
| 25 | Long Beach, CA | 19.08% | 59.41% |
| 26 | Irving, TX | 18.67% | 59.12% |
| 27 | Pittsburgh, PA | 19.50% | 59.04% |
| 28 | Durham, NC | 19.11% | 58.26% |
| 29 | Riverside, CA | 18.50% | 58.01% |
| 30 | Mesa, AZ | 20.09% | 57.95% |
| 31 | Plano, TX | 16.34% | 57.84% |
| 32 | Las Vegas, NV | 19.48% | 57.71% |
| 33 | Buffalo, NY | 20.20% | 57.42% |
| 34 | Anchorage, AK | 16.66% | 57.21% |
| 35 | Fresno, CA | 19.64% | 56.68% |
| 36 | Birmingham, AL | 23.12% | 56.59% |
| 37 | Philadelphia, PA | 24.84% | 56.14% |
| 38 | Reno, NV | 18.00% | 55.95% |
| 39 | Anaheim, CA | 17.03% | 55.84% |
| 40 | San Jose, CA | 14.15% | 55.81% |
| 41 | San Diego, CA | 14.46% | 55.31% |
| 42 | Boise, ID | 14.82% | 55.29% |
| 43 | Virginia Beach, VA | 17.74% | 55.26% |
| 44 | Oklahoma City, OK | 21.55% | 54.58% |
| 45 | El Paso, TX | 18.96% | 54.24% |
| 46 | Indianapolis, IN | 22.88% | 53.65% |
| 47 | Chesapeake, VA | 17.90% | 53.39% |
| 48 | Denver, CO | 18.89% | 53.02% |
| 49 | San Antonio, TX | 20.16% | 52.97% |
| 50 | Stockton, CA | 20.99% | 52.82% |
| 51 | Oakland, CA | 18.64% | 52.76% |
| 52 | Omaha, NE | 21.00% | 52.57% |
| 53 | Fort Worth, TX | 21.48% | 52.44% |
| 54 | Lubbock, TX | 21.19% | 52.42% |
| 55 | Phoenix, AZ | 22.41% | 52.02% |
| 56 | Cincinnati, OH | 19.75% | 51.98% |
| 57 | Orlando, FL | 18.35% | 51.92% |
| 58 | North Las Vegas, NV | 19.68% | 51.81% |
| 59 | Glendale, AZ | 21.09% | 51.59% |
| 60 | Chicago, IL | 19.24% | 51.29% |
| 61 | Toledo, OH | 22.35% | 51.04% |
| 62 | Cleveland, OH | 21.03% | 50.93% |
| 63 | Houston, TX | 20.35% | 50.82% |
| 64 | Dallas, TX | 20.11% | 50.78% |
| 65 | New Orleans, LA | 19.94% | 50.69% |
| 66 | Arlington, TX | 21.88% | 50.42% |
| 67 | Colorado Springs, CO | 19.72% | 50.17% |
| 68 | Kansas City, MO | 20.92% | 49.96% |
| 69 | Charlotte, NC | 21.74% | 49.92% |
| 70 | Raleigh, NC | 20.02% | 49.87% |
| 71 | Bakersfield, CA | 20.81% | 49.68% |
| 72 | Atlanta, GA | 18.89% | 49.51% |
| 73 | Los Angeles, CA | 19.08% | 49.43% |
| 74 | Spokane, WA | 18.88% | 49.25% |
| 75 | Nashville, TN | 20.31% | 49.00% |
| 76 | Louisville, KY | 22.61% | 48.91% |
| 77 | New York, NY | 19.88% | 48.71% |
| 78 | Sacramento, CA | 20.79% | 48.32% |
| 79 | Columbus, OH | 18.97% | 48.16% |
| 80 | Corpus Christi, TX | 20.46% | 47.95% |
| 81 | Jacksonville, FL | 19.33% | 47.36% |
| 82 | Newark, NJ | 23.94% | 47.21% |
| 83 | Winston-Salem, NC | 23.09% | 47.11% |
| 84 | San Bernardino, CA | 24.20% | 47.01% |
| 85 | Tucson, AZ | 20.45% | 46.99% |
| 86 | Baltimore, MD | 22.59% | 46.79% |
| 87 | Greensboro, NC | 25.23% | 46.79% |
| 88 | St. Louis, MO | 15.31% | 46.56% |
| 89 | Fremont, CA | 10.93% | 45.89% |
| 90 | Boston, MA | 14.12% | 44.93% |
| 91 | Richmond, VA | 20.94% | 43.53% |
| 92 | Minneapolis, MN | 19.48% | 42.78% |
| 93 | Norfolk, VA | 22.37% | 41.92% |
| 94 | Baton Rouge, LA | 23.46% | 41.71% |
| 95 | Memphis, TN | 22.71% | 41.47% |
| 96 | Fort Wayne, IN | 18.29% | 39.76% |
| 97 | Tulsa, OK | 20.95% | 39.43% |
| 98 | Detroit, MI | 26.05% | 34.01% |
| 99 | Washington, DC | 18.10% | 31.94% |
| 100 | Des Moines, IA | 18.95% | 19.01% |
Note: *No. 1 = Largest Increase
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