Georgia ranks second in the ten worst states for credit
With the continuing flood of bankruptcies and foreclosures, many Atlanta families are dealing with the ramifications of a low credit rating. However, many do not realize that these negative effects can go beyond the individual or family and affect the community as a whole. If a city or state has a cumulatively low credit rating, companies will be less likely to do business in the area, with a resulting negative effect on unemployment and quality of life in the state.
According to a new study, Georgia is among the top 10 worst states for credit. The research was conducted by the website CardRatings.com, which examined states’ average credit scores, foreclosure rates, bankruptcy rates, unemployment rate, and credit card delinquency rates, in order to determine which areas had the worst cumulative credit rating.
Georgia ranked second on the top ten list, scoring low in all five categories analyzed by the website. The state is the second worst for bankruptcies, behind only Nevada, and also ranked the fourth worst for credit card delinquencies. Other states in the top 10 are Nevada, as previously stated, as well as California, Florida, Arizona, Alabama, Tennessee, Michigan, Mississippi and Idaho.
In general, a state’s low collective credit score will have a slowing effect on the local economy, negatively affecting unemployment, home prices and the real estate market. In addition, local institutions may not have the ability to lend money, and national businesses may not want to extend credit to Georgia citizens if they have a record of inability to make payments on time.
Source: Fox Business, “Ten Worst States for Credit,” Curtis Arnold, 21 July 2011