Lending Tree: Indy Residents Do a Good Job Managing of Their Credit
INDIANAPOLIS -- Nearly half of all American adults, including many Hoosiers, are struggling to make ends meet and living beyond their means. But a new survey shows that people in Indianapolis are doing a pretty good job of managing their credit.
Online lending exchange site Lending Tree ranks Indianapolis number 30 in its list of 50 metropolitan cities with the best credit performance.
To come up with their ranking, Lending Tree experts looked at 4 key areas:
- Mortgage debt relative to their income
- Non-housing debt relative to their income
- Percentage of credit lines used
- How often people are opening new lines of credit
Brian Karimzad, Vice President of Research at LendingTree, says people in Indianapolis are managing their credit cards well.
"They are pretty responsible on not maxing out their credit cards. The other place they are doing well is on housing costs. The average mortgage debt balance for someone in Indianapolis is just around $52,000. For comparison, the average for the 50 largest metros is $67,000," Karimzad said.
The main area of concern for folks in Indianapolis, according to Karimzad, is debt that falls outside of housing and credit cards.
"That usually ends up being car loans and student loans. Generally, the culprit here is car loans. The average balance in Indianapolis of these installment accounts is $25,000,” explains Karimzad.
“It's just a bit of above the national average, but Indianapolis residents also have incomes that are below the national average. So, maybe you could consider a used vehicle the next time you have to get one.”
Karimzad recommends shopping around for car loans rates before you get to a dealer when you buy your next car.
Greenville, South Carolina finished #1 in the Lending Tree study, while San Antonio finished last.
The picture above shows the top 10 cities in green.
1. Greensville, SC
2. Greensboro, NC
3. Kansas City, MO
4. Buffalo, NY
5. Charlotte, NC
6. Milwaukee, WI
7. San Francisco, CA
8. Boston, MA
9. New York, NY
10. Raleigh, NC
(PHOTO: Courtesy of LendingTree)