Credit Card Delinquency Rates in USA: State wise Analysis

U.S. Credit Card Delinquency Rates by State

Rank	Region Name	Delinquency Rates (%)
1	Mississippi	37
2	Louisiana	32
3	Alabama	31
4	Arkansas	29
5	Oklahoma	28
6	Texas	27
7	Georgia	26
8	Tennessee	25
9	South Carolina	24
10	West Virginia	23
11	Kentucky	22
12	Ohio	21
13	Indiana	20
14	Missouri	19
15	Kansas	18
16	Iowa	17
17	Nebraska	17
18	North Carolina	16
19	Florida	16
20	Michigan	16
21	Pennsylvania	15
22	Illinois	15
23	Wisconsin	15
24	Minnesota	15
25	North Dakota	15
26	South Dakota	15
27	Wyoming	15
28	Montana	15
29	Idaho	15
30	Utah	15
31	Arizona	15
32	New Mexico	15
33	Nevada	15
34	Colorado	15
35	Virginia	15
36	Maryland	15
37	Delaware	15
38	Washington	15
39	Oregon	15
40	California	15
41	Alaska	15
42	Hawaii	15
43	New York	15
44	New Jersey	15
45	Connecticut	15
46	Massachusetts	15
47	Rhode Island	15
48	Maine	15
49	New Hampshire	15
50	Vermont	15
51	District of Columbia	15

In 2025, credit card delinquency rates in the United States exhibit significant regional differences, as households continue to face the challenges of persistent inflation, elevated interest rates, and an uneven economic recovery.

The accompanying table ranks all 50 states along with the District of Columbia based on delinquency rates, which are defined as payments that are 30 days or more overdue.

Mississippi leads the rankings with a rate of 37%, whereas most states in the Northeast and West maintain rates around 15%.

The data is sourced from recent studies, including Visual Capitalist’s analysis of state-level trends and WalletHub’s consumer reports.

These statistics underscore how economic vulnerabilities can intensify financial pressures in specific regions.

Southern states frequently occupy the higher ranks due to factors such as lower median incomes and job instability in sectors like agriculture and manufacturing.

Conversely, economies driven by technology demonstrate greater resilience. This analysis delves into these trends, revealing how geography influences debt challenges and what implications they hold for the overall economy.

Regional Disparities in Financial Strain

The data presented highlights a significant gap: Southern and Midwestern states are experiencing the highest levels of delinquencies, whereas coastal areas report lower figures.

Mississippi’s delinquency rate of 37% is largely due to its dependence on unstable industries such as agriculture and hospitality, where the average annual wage is $48,000, according to the U.S. Bureau of Labor Statistics.

Families in this state are resorting to credit cards for basic needs amidst a 5% increase in food prices, resulting in a rise in overdue accounts.

Louisiana follows closely with a 32% rate, worsened by job losses in the energy sector; fluctuations in oil prices led to thousands of layoffs in 2024, leaving families with an average credit card debt of $6,200, struggling to manage payments at a 22% APR.

Alabama’s 31% rate reflects similar challenges, as the closure of textile mills has displaced workers and decreased household incomes by 8% year-over-year.

Economists link this increase in delinquencies in the South to underlying structural issues.

The region’s poverty rate is at 16%, which is twice the national average of 8%, based on Census Bureau data. Low-paying jobs provide minimal protection against unforeseen expenses, such as $1,500 repairs for hurricane damage in areas prone to flooding.

Banks indicate that subprime borrowers—those with credit scores below 660—account for 60% of these delinquencies, as they carry larger balances resulting from spending during the pandemic.

Research from the Federal Reserve shows that the growth of delinquencies among non-prime borrowers surged by 59% in low-income ZIP codes from 2021 to 2025, reflecting the trends illustrated in the table.

Midwestern states such as Ohio (21%) and Indiana (20%) are experiencing moderate increases due to slowdowns in manufacturing. In early 2025, auto plant slowdowns in Ohio resulted in 12,000 workers being idled, according to state labor reports, which has led to a reliance on credit for $800 monthly car payments.

However, these rates are still lower than those in the South, as union protections and a median income of $55,000 offer some degree of stability.

Data from WalletHub indicates that Ohio saw a 28.65% spike in quarter-over-quarter delinquency in Q2 2025, which is linked to stagnant wages in the face of 3% overall inflation.

Resilience in Affluent Economies

Northeastern and Western states are grouped at the lower end with 15% delinquency rates, highlighting their economic buffers.

New York, as a financial hub, attracts high-paying jobs in finance and technology, raising median household incomes to $81,000.

Residents in this region prioritize debt repayment, with delinquency rates of only 14.9% in 2024, which have slightly increased to 15% this year.

Massachusetts reflects a similar trend at 15%, fueled by booms in the biotech sector; Cambridge’s innovation corridor added 5,000 jobs in 2025, according to state economic development reports, alleviating pressure on average balances of $7,500.

California’s 15% delinquency rate may seem misleading given its size; the wealth generated in Silicon Valley helps to mitigate rural economic struggles, although rising housing costs—up 6%—are beginning to take a toll.

The state’s varied economy, which spans from Hollywood to agriculture, helps to distribute risk.

Data from the Federal Reserve Bank of New York shows that the national transition rate into delinquency stands at 9.1%, while California’s rate is lower at 7%, aided by the flexibility of the gig economy.

Washington and Oregon enjoy similar advantages; the presence of Amazon and Nike headquarters supports employment, maintaining an unemployment rate of 4.2% compared to the national average of 4.8%.

These low rates stem from increased financial literacy and greater access to alternatives.

Residents of the Northeast maintain higher savings—averaging $12,000 in emergency funds, according to Bankrate surveys—enabling them to withstand financial shocks without defaulting.

Additionally, diverse communities utilize lending circles, which help mitigate the isolation often associated with debt cycles.

Economic Drivers and Future Implications

High interest rates, currently around 21% for credit cards, exacerbate delinquencies across the nation, with the most severe impact felt in vulnerable states.

The Federal Reserve reported a national credit card delinquency rate of 3.05% in April 2025, which conceals significant state-level differences; borrowers in the South are burdened with compounded interest on $9,000 balances, resulting in annual charges of $1,890.

Furthermore, inflation has diminished pandemic savings by 40%, as noted in an analysis by the St. Louis Fed, leading to difficult choices such as forgoing medical appointments.

Younger borrowers are driving this trend: individuals aged 18-29 exhibit a 12% delinquency rate, an increase from 8% in 2021, as student debt—totaling $1.7 trillion—competes with credit card payments.

In states with high delinquency rates, this age group accounts for 25% of delinquents, according to data from New York Fed panels.

In contrast, states with robust education systems, such as Connecticut, report lower youth delinquency rates at 10%, attributed to improved job opportunities.

Forecasts indicate a potential stabilization; TransUnion anticipates a national serious delinquency rate of 2.76% by the end of the year, reflecting only a slight increase of 0.12%, as interest rate reductions alleviate some financial pressures.

However, without corresponding wage growth—projected at 3.2%—Southern states may continue to experience elevated delinquency rates.

Policymakers are considering relief measures, such as expanded earned income tax credits, which have been shown to reduce delinquency by 15% in pilot programs.

Source

• TransUnion. (2024). 2025 consumer credit forecast. https://newsroom.transunion.com/2025-Consumer-Credit-Forecast/