City 2nd in credit cards per resident
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Despite a historic recession and worries about rising debt, Pittsburghers can't resist their credit cards.
Pittsburgh is second to only New York when it comes to major cities with the highest average number of open credit cards, according to a study released this week by credit bureau Experian on trends in the top 20 major metropolitan areas.
For a city recognized nationwide for avoiding the worst of the mortgage crisis, the study seems to contradict the conservative and risk-adverse image usually associated with residents here.
"Pittsburghers are thrifty," said David Root Jr., CEO of DB Root & Co., a Downtown wealth management firm. "Maybe by having more than one credit card it could mean they are shopping for a better deal on interest rates and annual fees."
Pittsburghers are still proving to be responsible borrowers. The average VantageScore for area residents stood at 772 in June 2010 while the average nationwide was 749. The VantageScore is a credit score jointly developed by major credit bureaus.
Nationally, the Experian study found consumers were opening 26 percent fewer credit cards than they were three years ago.
It also found that out of the top metropolitan areas studied, the average number of open bank cards were typically higher than the average number of store-issued credit cards, with the exception of four areas -- Pittsburgh, Miami, Atlanta and Columbus, Ohio.
Residents of Pittsburgh have an average of 3.6 open credit cards and an average total balance of $5,989.
While New Yorkers have an average 3.77 open credit cards, they aren't using those cards as much as residents in other cities. New Yorkers have an average total balance of $5,713, lower than Atlanta's $6,753 and Seattle's $6,577.
According to the Experian study, Phoenix residents on average have the lowest number of credit cards at 2.78. However, San Francisco and Houston have the lowest average monthly balances at $5,323 and $5,328, respectively.
Meanwhile, another report found credit card debt nationwide continued to fall.
The latest Federal Reserve Consumer Credit Report shows a decrease in June at an annual rate of 6.5 percent. It dropped $4.5 billion for the month and has declined nearly $150 billion since October 2008, from $976.1 billion to $826.5 billion.
"Paying off debt and spending less is good for personal finances," said Bill Hardekopf, CEO of LowCards.com, based in Birmingham, Ala. "Fewer delinquencies and smarter lending practices are good for banks."
First Published August 12, 2010 12:00 am
