On Your Side: Missouri and Arkansas rank low when it comes to maintaining credit, report says

AROUND THE OZARKS (KY3) – A new report shows people in Missouri and Arkansas aren’t the best at maintaining credit.

The WalletHub report found that, out of all 50 states, Arkansas ranked last when it comes to how well people handle loans.

According to the report, Arkansas is the least diligent state when it comes to credit management. Nearly half of its users have had an account go to collections. Missouri didn’t do much better.

“This is a byproduct of the last four to five years of record inflation,” said Chip Lupo, with WalletHub.

Lupo is a WalletHub analyst and helped track payment habits and credit usage in each state.

Missouri ranks 37th, and Arkansas 50th, when it comes to how well we manage credit.

“People have become more dependent on their credit cards to fund everyday expenses, with the cost of everything going up,” said Lupo.

That gets dangerous if you’re not paying your bills on time and in full. The report found that about a quarter of Missourians have recently missed a payment.

“There does need to be more of an emphasis on financial literacy. A lot of your lenders hold free community workshops about the basics, but it does need to be integrated into the school curriculum and start at home, also,” said Lupo. “It starts there also. A lot of times, when children become adults, they repeat the spending patterns of the financial patterns of their parents.”

The report didn’t just focus on how well people borrow money, but also on how often people check their credit reports.

It’s a good habit to check your credit report at least once a year. Errors can impact your credit score.

Remember – lenders, potential employers, and even utility companies will review your credit report.

By the way, the top three states when it comes to managing credit are Massachusetts, Iowa, and Vermont, according to WalletHub.

You can check your credit report right now for free at Annualcreditreport.com.

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