PROVIDENCE – Rhode Island saw one of the largest drops in credit card delinquency rates nationwide during the first part of the COVID-19 pandemic, according to a new study by QuoteWizard.
Rhode Island and Michigan both reported a 39% drop in the percentage of residents with credit card delinquency from February to October 2020, the largest declines of any state nationwide, according to QuoteWizard’s December 2021 report. This was more than the 31% nationwide average drop in credit card delinquencies.
The insurance comparison tool company also looked at how the pandemic affected debt across five measurements: credit card delinquency, student loan delinquency, subprime credit scores, debt collection rates, and median amount of debt collections, all during the same 10-month period of 2020.
Student loan delinquency in Rhode Island dropped by 29%, slightly less than the 33% national average.
The Ocean State saw a 13% drop in the percentage of residents with subprime credit scores, while the percentage of people facing debt collection fell by 5%. Median debt in collections rose by $9 to $1,803.
Taking into account all these factors, Rhode Island ranked No. 14 among states for the largest changes in debt during 2020. Minnesota reported the biggest change in debt, while Alaska and Texas tied for the smallest change.
Changes in debt were calculated based on data from the Urban Institute. Subprime credit scores are defined as those between 580 and 619. Student loan delinquency was defined as failing to make a payment for 60 days, while credit card delinquency was defined as failing to make a payment for 30 days.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
