According to a recently released study by CardRatings.com, personal credit conditions in Tennessee are the 10th worst in the nation.
The study based its findings on five criteria: unemployment, personal bankruptcies, average credit scores, credit card delinquencies and home foreclosures. Nevada had the worst rating, followed by Georgia, Florida, Arizona and California. Surprisingly, several Midwestern states ranked in the top five states having the best credit conditions. Those states are North Dakota, Vermont, South Dakota, Montana and Iowa, in that order.
For consumers in Tennessee, the study may indicate that the state's economic recovery will lag behind the signs of national improvement we have discussed in several recent posts. For example, the U.S. Commerce Department recently calculated that credit card debt has remained at record lows since the 2008 crash, and consumer spending habits also appear to have remained conservative.
However, poor personal credit conditions might create additional challenges for individual Tennessee consumers. One side-effect might be higher interest rates -- or denials -- on credit or loan applications. Those with poor credit might also have more difficulty getting an apartment or cell phone contract, both of which require information about a person's credit history. Insurance companies also rely on that information, which could result in higher premiums for individuals perceived to be at high risk due to their poor credit history. Certain jobs, such as those in the finance industry, might also require good credit as a condition of employment.
For all of these reasons, a Tennessee consumer with poor credit might benefit from consulting with an attorney. An attorney can advise about any possible options for debt consolidation or relief.
Source: The Tennessean, "Study: TN's personal credit condition poor," Duane Marsteller, Aug. 15, 2012
· Our firm handles situations similar to the one discussed in this post. If you would like to learn more about our practice, please visit our Memphis Debt Consolidation page.