Bay Area has most the most people with Great Credit (San Jose: mortgage, credit score)

[18Montclair]

They obviously didnt consider some of my relatives...YIKES.

TransUnion Reveals U.S. Metro Areas With Best / Worst Credit Grades

[sliverbox]

They have great credit because they have maxed out their finances on their mortgages. Whenever you have a huge amount of outstanding debt, that builds your credit.

[Mr. Fantastic]

Pretty much. Just looking at the MLS, the following cities have over a 10% NOD rate:

Oakland
Richmond
Vallejo
San Leandro
Hayward
Fairfield

Great credit, but underwater mortgage loans. That seems like a great trade off.

[mstnghu2]

Originally Posted by sliverbox

They have great credit because they have maxed out their finances on their mortgages. Whenever you have a huge amount of outstanding debt, that builds your credit.

Actually having a huge amount of outstanding debt lowers your credit score, even if you're making your payments on time. Having a low amount of debt relative to your credit limits will raise your score.

[Mr. Fantastic]

Originally Posted by mstnghu2

Actually having a huge amount of outstanding debt lowers your credit score, even if you're making your payments on time. Having a low amount of debt relative to your credit limits will raise your score.

That's actually wrong.

Having a huge amount of outstanding debt only lowers your score beyond a certain limit, then it tapers off geometrically. The difference between having $50,000 outstanding debt and $750,000 is only a few points, especially if you're making your payments on time.

Having a low amount of debt, but having a high amount of credit, can actually lower your score.

[18Montclair]

Originally Posted by sliverbox

They have great credit because they have maxed out their finances on their mortgages.

Nope. Bay Area residents also save more money than anywhere else in California as evidenced by this:

Nest Egg Index-Cities with the most savings
In the third annual Nest Egg Index, we ranked the 500 top-performing communities based on their residents' personal savings and investing behavior. By measuring a dozen statistical factors - including participation in retirement savings plans, personal debt levels and home ownership - the Nest Egg Index shows the geographic regions where people are succeeding and facing difficulty with their nest eggs. In this year's results, communities that ranked highly in the Nest Egg Index continue to benefit from strong local housing markets and show a high propensity toward saving and investing in retirement vehicles such as 401(k) or pension plans. And while these communities had higher costs of living than the national average, nineteen out of the top 20 also had lower debt levels.

1 Los Alamos, NM
2 San Jose-Sunnyvale-Santa Clara, CA
3 Bridgeport-Stamford-Norwalk, CT
4 Torrington, CT
5 San Francisco-Oakland-Fremont, CA
6 Barnstable Town, MA
7 Minneapolis-St Paul-Bloomington, MN
8 Holland-Grand Haven, MI
9 Oxnard-Thousand Oaks-Ventura, CA
10 Edwards, CO
11 Washington-Arlington-Alexandria, DC-MD-VA
12 Boston-Cambridge-Quincy, MA
13 Gardnerville-Ranchos, NV
14 Rochester, MN
15 Red Wing, MN
16 Appleton, WI
17 Faribault-Northfield, MN
18 Trenton-Ewing, NJ
19 Naples-Marco Island, FL
20 Hartford-West Hartford-East Hartford, CT
21 Santa Cruz-Watsonville, CA
22 Norwich-New London, CT
23 Lexington Park, MD
24 Boulder, CO
25 Juneau, AK

Nest Egg Index - Your Financial Nest Egg: A.G. Edwards


It has more to do with being financially responsible than anything else. You pay your debts on time consistently and it will reflect in a favorable credit score.

Not too hard to understand.

[NorCal Dude]

yawn

[gotigers123]

Originally Posted by sliverbox

They have great credit because they have maxed out their finances on their mortgages. Whenever you have a huge amount of outstanding debt, that builds your credit.

Wow.

Disturbingly incorrect.

[NorCal44]

Originally Posted by Mr. Fantastic

That's actually wrong.

Having a huge amount of outstanding debt only lowers your score beyond a certain limit, then it tapers off geometrically. The difference between having $50,000 outstanding debt and $750,000 is only a few points, especially if you're making your payments on time.

Having a low amount of debt, but having a high amount of credit, can actually lower your score.

However, I (and some of my friends) fit your last statement perfectly, and yet have a score above 800. If having low debt and lots of credit will "lower your score" than I still recommend it as the best way to go.

[bigdumbgod]

Where's Barnstable Town?