This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why Whole Regions Have Better Credit Scores Than Others

Stocks in this article: AAPL FDX GOOG

Should creditors start focusing on where people live as much as how much money they make? Possibly -- at least until financial consumers in lower-credit rating states bring their game up a notch or two.

"Just as an individual's credit score is a measure of the risk that consumer presents to a lender, our study calculated the credit score that would correspond to the risk presented on average by residents of various metropolitan areas," said Heather Battison, a senior director at TransUnion responsible for consumer education. "We want to congratulate those cities that have the lowest average credit risk or the highest credit scores -- and help educate those with high credit risk or low credit scores."

One theory on the disparity of credit scores in geographical areas is the prevalence of college graduates in top-rated cities.

The San Francisco-San Jose area is home to some of the top colleges in the country, including Stanford and the University of California. So, too, in Boston, where Harvard, Tufts, Boston University and the Massachusetts Institute of Technology are either in the city or close by.

Private businesses tend to set up shop close to those college incubators (think Apple (AAPL - Get Report) and Google (GOOG) in Northern California or Reebok, Gillette and Fidelity Investments in Boston. Those firms pay high salaries and good benefits to workers, and that could contribute to residents of those cities possessing higher credit scores.

Of course, that's no guarantee. Memphis, of course, is the headquarters of Federal Express (FDX - Get Report), one of the largest and most successful companies in the world.

Whatever the reason, TransUnion says that beefing up a credit score is an attainable goal as long as you manage your credit right, make debt payments on time and keep debt balances low.

Do those three things and chances are your credit score will improve no matter where you live.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs