The worldwide pandemic continues to draw havoc for many people whether it’s travel, finances, or paying rent.
And because the COVID-19 pandemic is causing many people to borrow more or fall behind on payments, the personal-finance website WalletHub analyzed the average credit scores of residents in all 50 states and released its report on 2020’s States with the Highest & Lowest Credit Scores.
For instance, if you reside in California, the average credit score in California is 692, which ranks 17th highest in the U.S., according to a WalletHub press release.
Credit Scores
As for what some of the biggest ways people’s credit scores can be hurt during the pandemic, an analyst with WalletHub said, “The biggest ways people’s credit scores can be hurt during the pandemic are by missing payments and racking up debt. A missed payment on a credit account can stay on a person’s credit report for seven years, and can impact their credit score during that entire time,” said Jill Gonzalez, WalletHub analyst.
“Many people have needed to borrow money during the pandemic, and an increased debt load and higher credit utilization on revolving accounts can also be detrimental to a person’s credit score.”
Stimulus Checks
And if you are wondering if a second stimulus checks help people’s credit scores Gonzalez said, “A second stimulus check could help people’s credit scores by making people less likely to borrow or miss a payment, thus avoiding increasing their debt load or putting negative information on their credit reports.
“We might even see a stimulus check lead to a big paydown of existing debts. In the second quarter of 2020, after people received their stimulus checks, there was one of the highest credit-card-debt paydowns in the last few decades. Decreasing one’s existing debt is a good way to raise one’s credit score long-term because it makes it easier to both manage the debt and make on-time payments.”
Source: WalletHub
