Southern Discomfort: 9 of 10 Metros With Highest Credit Card Utilization Rates in South
San Antonio credit cardholders use more of their available credit than those in the largest U.S. metros, according to a new LendingTree analysis, but other Southern metros aren’t far behind.
Researchers reviewed about 190,000 anonymized credit reports from LendingTree users who carried a credit card balance in the second quarter of 2024. The goal was to see which metros had the highest credit utilization rates, comparing balances and available credit.
We found that residents in more than half of the largest U.S. metros are keeping their utilization rates below the conventional 30.0% target — including one below 20.0%. However, that story is different in the South. Nine of the 10 metros with the highest average utilization rates are in the South, including three in the Lone Star State.
Here’s more on what we found.
Key findings
- The average credit card utilization rate across the 50 largest metros is 30.0%. That’s down slightly from 30.5% in 2023 but up from 28.6% in 2022. Twenty-eight of the 50 largest metros have average utilization rates below 30.0%. Nine of the 10 metros with the highest credit card utilization rates are in the South.
- San Antonio has the highest credit card utilization rate at 37.8%. Riverside, Calif., follows closely at 35.9%, while another Texas metro, Houston, ranks third at 35.1%.
- San Jose, Calif., at 19.8%, is the only major metro with a credit card utilization rate of 20.0% or lower. Its Bay Area neighbor, San Francisco, is next closest at 23.7%, followed by Minneapolis at 24.6%.
- North Carolina metros have the fastest growing — and falling — utilization rates. Charlotte, N.C., saw the biggest increase between the second quarters of 2023 and 2024 at 10.7%, followed by Minneapolis at 4.7% and Indianapolis at 3.0%. Meanwhile, another North Carolina metro — Raleigh — saw the biggest decrease in this period at 14.7%, edging out Louisville, Ky., at 13.0% and Memphis, Tenn., at 11.8%.
- Credit utilization ratios increase as credit scores worsen. Consumers with credit scores of 720 and up have a utilization rate of 10.2%, while those with credit scores of 660 to 719 have a 36.2% utilization rate — more than triple the rate of the other group.
Why your credit utilization ratio matters
Amounts owed — which factors in credit utilization — is one of the most important credit-scoring factors. The ultimate goal should be to keep your balances — and your utilization — fairly close to zero, but that’s not always possible.
The conventional wisdom has long been that cardholders should strive to keep their rate below 30.0%. (Someone with $10,000 of available credit and a $3,000 balance has a 30.0% utilization rate.) Anything above that can damage your credit score.
Utilization rates down slightly across big U.S. metros; San Antonio highest, San Jose lowest
The average credit card utilization rate among the 50 largest U.S. metros in the second quarter of 2024 was 30.0%, right at the line that conventional wisdom says to stay below. The good news is that rate is down slightly from 2023’s 30.5%. The bad news is that it’s up nearly two points from 28.6% in 2022.
No matter the year, there’s plenty of room for improvement. While 30.0% is the highest you’d want to go to protect your credit score, utilization rates for the residents of many of the nation’s biggest metros go well above that.
San Antonio tops the list (37.8%), followed closely by Riverside, Calif. (35.9%), and Houston (35.1%). Two California giants are at the other end of the list: San Jose (19.8%) and San Francisco (23.7%). The next closest is Minneapolis (24.6%).
Credit card utilization rates in the 50 largest U.S. metros
| Rank | Metro | Average credit card utilization rate |
|---|---|---|
| 1 | San Antonio, TX | 37.8% |
| 2 | Riverside, CA | 35.9% |
| 3 | Houston, TX | 35.1% |
| 4 | Virginia Beach, VA | 34.8% |
| 5 | Memphis, TN | 34.5% |
| 6 | New Orleans, LA | 34.4% |
| 7 | Orlando, FL | 34.3% |
| 8 | Atlanta, GA | 33.5% |
| 9 | Oklahoma City, OK | 33.1% |
| 10 | Dallas, TX | 32.9% |
| 11 | Birmingham, AL | 32.8% |
| 12 | Las Vegas, NV | 32.7% |
| 13 | Jacksonville, FL | 32.2% |
| 14 | Charlotte, NC | 32.0% |
| 15 | Tampa, FL | 31.0% |
| 16 | Indianapolis, IN | 30.9% |
| 16 | Baltimore, MD | 30.9% |
| 18 | Richmond, VA | 30.8% |
| 19 | Phoenix, AZ | 30.7% |
| 20 | Providence, RI | 30.3% |
| 21 | Detroit, MI | 30.1% |
| 22 | Salt Lake City, UT | 30.0% |
| 23 | Pittsburgh, PA | 29.8% |
| 23 | Buffalo, NY | 29.8% |
| 23 | Sacramento, CA | 29.8% |
| 26 | Hartford, CT | 29.7% |
| 27 | Miami, FL | 29.5% |
| 28 | Cleveland, OH | 29.4% |
| 29 | New York, NY | 29.3% |
| 29 | Philadelphia, PA | 29.3% |
| 29 | Chicago, IL | 29.3% |
| 32 | Los Angeles, CA | 29.0% |
| 33 | Columbus, OH | 28.6% |
| 34 | Austin, TX | 28.5% |
| 35 | Cincinnati, OH | 28.4% |
| 35 | San Diego, CA | 28.4% |
| 37 | Washington, DC | 28.2% |
| 38 | Denver, CO | 28.1% |
| 39 | Portland, OR | 28.0% |
| 39 | Milwaukee, WI | 28.0% |
| 41 | Raleigh, NC | 27.9% |
| 41 | Nashville, TN | 27.9% |
| 43 | Kansas City, MO | 27.7% |
| 44 | Louisville, KY | 27.5% |
| 45 | St. Louis, MO | 27.1% |
| 46 | Boston, MA | 27.0% |
| 47 | Seattle, WA | 26.0% |
| 48 | Minneapolis, MN | 24.6% |
| 49 | San Francisco, CA | 23.7% |
| 50 | San Jose, CA | 19.8% |
Source: LendingTree analysis of about 190,000 anonymized credit reports of LendingTree users from April 1 through June 30, 2024. Note: This includes only consumers with an active credit card.
Nine of the top 10 and 13 of the top 15 metros with the highest utilization rates are in the South. Among the 15 are three metros in Texas (San Antonio, Houston and Dallas) and three in Florida (Orlando, Jacksonville and Tampa).
In all, 28 of the nation’s 50 biggest metros have average utilization rates below 30.0%. The nation’s three biggest metros — New York, Los Angeles and Chicago — clock in at about 29.0%, below the national average.
North Carolina metros have fastest growing — and falling — rates
Charlotte, N.C., residents saw their average utilization rate rise 10.7% from 28.9% to 32.0% between the second quarters of 2023 and 2024. That was by far the biggest jump of any of the 50 biggest metros, with Minneapolis (up 4.7%) and Indianapolis (up 3.0%) in a distant second and third. However, even with the sizable increase, Charlotte’s utilization rate didn’t crack the top 10 among the biggest U.S. metros.
The news isn’t all bad in the South. The three that saw their utilization rates fall the most in the same period were all in the South, including Raleigh, N.C., at the top. Raleigh’s residents lowered their utilization rate by 14.7%, from 32.7% to 27.9%. That’s significant. Louisville, Ky. (down 13.0%), and Memphis (down 11.8%) weren’t far behind.
Changes in credit card utilization rates between Q2 2023 and Q2 2024
| Rank | Metro | Average credit card utilization rate, Q2 2023 | Average credit card utilization rate, Q2 2024 | % change, Q2 2023 to Q2 2024 |
|---|---|---|---|---|
| 1 | Charlotte, NC | 28.9% | 32.0% | 10.7% |
| 2 | Minneapolis, MN | 23.5% | 24.6% | 4.7% |
| 3 | Indianapolis, IN | 30.0% | 30.9% | 3.0% |
| 4 | Providence, RI | 29.5% | 30.3% | 2.7% |
| 5 | San Diego, CA | 27.7% | 28.4% | 2.5% |
| 6 | Portland, OR | 27.4% | 28.0% | 2.2% |
| 7 | Orlando, FL | 33.6% | 34.3% | 2.1% |
| 8 | Seattle, WA | 25.5% | 26.0% | 2.0% |
| 9 | New Orleans, LA | 33.8% | 34.4% | 1.8% |
| 10 | Riverside, CA | 35.4% | 35.9% | 1.4% |
| 10 | Salt Lake City, UT | 29.6% | 30.0% | 1.4% |
| 12 | Detroit, MI | 29.7% | 30.1% | 1.3% |
| 13 | Houston, TX | 34.7% | 35.1% | 1.2% |
| 14 | Denver, CO | 27.8% | 28.1% | 1.1% |
| 15 | Los Angeles, CA | 28.8% | 29.0% | 0.7% |
| 16 | Boston, MA | 26.9% | 27.0% | 0.4% |
| 17 | San Antonio, TX | 37.9% | 37.8% | -0.3% |
| 17 | Birmingham, AL | 32.9% | 32.8% | -0.3% |
| 19 | San Francisco, CA | 23.8% | 23.7% | -0.4% |
| 20 | Las Vegas, NV | 32.9% | 32.7% | -0.6% |
| 20 | Phoenix, AZ | 30.9% | 30.7% | -0.6% |
| 22 | Richmond, VA | 31.1% | 30.8% | -1.0% |
| 22 | Pittsburgh, PA | 30.1% | 29.8% | -1.0% |
| 22 | New York, NY | 29.6% | 29.3% | -1.0% |
| 22 | Chicago, IL | 29.6% | 29.3% | -1.0% |
| 26 | Washington, DC | 28.5% | 28.2% | -1.1% |
| 27 | Nashville, TN | 28.3% | 27.9% | -1.4% |
| 27 | Kansas City, MO | 28.1% | 27.7% | -1.4% |
| 29 | Dallas, TX | 33.4% | 32.9% | -1.5% |
| 30 | Philadelphia, PA | 29.8% | 29.3% | -1.7% |
| 31 | Hartford, CT | 30.3% | 29.7% | -2.0% |
| 31 | Cleveland, OH | 30.0% | 29.4% | -2.0% |
| 33 | Milwaukee, WI | 28.6% | 28.0% | -2.1% |
| 34 | Baltimore, MD | 31.6% | 30.9% | -2.2% |
| 35 | Austin, TX | 29.2% | 28.5% | -2.4% |
| 36 | St. Louis, MO | 27.8% | 27.1% | -2.5% |
| 37 | Atlanta, GA | 34.4% | 33.5% | -2.6% |
| 37 | Miami, FL | 30.3% | 29.5% | -2.6% |
| 39 | Columbus, OH | 29.5% | 28.6% | -3.1% |
| 40 | San Jose, CA | 20.5% | 19.8% | -3.4% |
| 40 | Tampa, FL | 32.1% | 31.0% | -3.4% |
| 42 | Sacramento, CA | 30.9% | 29.8% | -3.6% |
| 42 | Virginia Beach, VA | 36.1% | 34.8% | -3.6% |
| 44 | Jacksonville, FL | 33.5% | 32.2% | -3.9% |
| 45 | Buffalo, NY | 31.1% | 29.8% | -4.2% |
| 46 | Oklahoma City, OK | 34.7% | 33.1% | -4.6% |
| 47 | Cincinnati, OH | 30.8% | 28.4% | -7.8% |
| 48 | Memphis, TN | 39.1% | 34.5% | -11.8% |
| 49 | Louisville, KY | 31.6% | 27.5% | -13.0% |
| 50 | Raleigh, NC | 32.7% | 27.9% | -14.7% |
Source: LendingTree analysis of about 190,000 anonymized credit reports of LendingTree users from April 1 through June 30, 2024, and about 195,000 in the same period in 2023. Note: This includes only consumers with an active credit card.
The metros with the highest and lowest overall utilization rates — San Antonio and San Jose, respectively — saw their rates dip between the second quarters of 2023 and 2024.
San Jose (down 3.4% from 20.5% to 19.8%) had more significant movement. San Antonio’s rate moved only slightly, dropping from 37.9% to 37.8%.
Better utilization rate, better credit score
If you want to improve your credit score, there are few better ways to do that than lowering your utilization rate. It isn’t always easy, but the impact can be significant.
This report unmistakably shows an inverse correlation between utilization rates and credit scores. That means that as one goes higher, the other one goes lower. The differences are nothing short of remarkable.
Average credit card utilization rate by credit score range
| Credit score range | Average credit card utilization rate |
|---|---|
| 300 to 579 (deep subprime) | 75.7% |
| 580 to 619 (subprime) | 63.1% |
| 620 to 659 (near-prime) | 52.8% |
| 660 to 719 (prime) | 36.2% |
| 720 to 850 (super-prime) | 10.2% |
Source: LendingTree analysis of about 190,000 anonymized credit reports of LendingTree users from April 1 through June 30, 2024. Note: This includes only consumers with an active credit card.
To be clear, we’re not claiming that dramatically reducing your utilization rate is going to take you from a bad credit score to a good one overnight.
Credit profiles are like snowflakes: Each one is different, and different changes and moves can have dramatically different effects on one’s score. These moves also don’t happen in a vacuum. If you dramatically reduce your utilization rate but are more than 30 days late with a payment on one of your cards, you shouldn’t expect your credit score to improve. (The good from the lower utilization rate might be outweighed by the bad of the late payment.)
All that said, lowering your utilization rate is a good goal for those trying to improve their credit. So how do you do it? Here are a few suggestions.
- Pay off your balances. It may be easier said than done — and that’s true today with stubborn inflation and record-high interest rates — but this should be the No. 1 goal of anyone struggling with credit card debt. That’s true for any number of reasons, but also because that lower balance will lower your utilization rate, which can help improve your credit score.
- Consolidate your balances with a personal loan. If you can’t immediately pay off your card debt, consider moving it onto a personal loan. An August 2024 LendingTree study found that using a personal loan to pay off your credit card debt can boost your credit score up to 86 points, depending on how much debt is being paid off. Why does that work? Primarily because it shrinks your utilization rate to zero. That’s because your utilization rate only includes revolving debt, such as credit cards, and not installment debt, such as personal loans, auto loans and mortgages. It can also improve your credit mix (the variety of loan types you’ve used), a lesser but still significant aspect of credit scoring.
- Acquire more available credit on your credit cards. Whether you get it by applying for a new card or requesting a higher credit limit on one or more of your current cards (which works more often than you might realize), bumping up your available credit on your credit cards can also improve your utilization rate. Rather than lowering balances, you’re focusing on the other part of the utilization equation. It can be effective — and possibly easier than paying off your balances — but there’s definite risk involved. The danger is that you’ll potentially damage your credit score if you spend that available credit and run up more debt. Tread lightly.
Methodology
LendingTree researchers analyzed about 190,000 anonymized credit reports from LendingTree users with an active credit card between April 1 and June 30, 2024 — the second quarter of 2024. For comparison, the analysis examined about 195,000 anonymized credit reports from LendingTree users who had an active credit card in the second quarter of 2023 and about 191,000 from the second quarter of 2022.
Analysts calculated each consumer’s credit card utilization percentage by dividing the credit balance by the credit limit. These calculations were then aggregated across the 50 largest U.S. metropolitan areas. The data includes only active, revolving credit cards with a balance.
Researchers used the U.S. Census Bureau 2022 American Community Survey with five-year estimates to identify the 50 largest metros.
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