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USA Today
12-07-2025
- Business
- USA Today
Way to go, Des Moines! The 10 most 'financially responsible' cities across America
A group of midwestern cities, including Des Moines, Iowa, Madison, Wisconsin, and Minneapolis, rank among the most 'financially responsible' in the nation, according to a new report. Minneapolis has a strikingly low share of consumers with maxed-out credit cards. Madisonians use an admirably low quotient of their available credit. Des Moines residents don't spend too much of their income on housing. LendingTree, the personal finance site, ranked the 100 largest metropolitan areas on five metrics of financial health, focusing on the ideal of living within one's means. The July 7 report draws from Federal Reserve and Census data, and from a sample of 260,000 anonymized LendingTree users. Here are the 10 most 'financially responsible' cities According to LendingTree, these are the 10 most financially responsible cities in America: Several other midwestern cities rank in LendingTree's top 20 for financial responsibility, including Kansas City, Missouri (13), Cincinnati (14), Columbus, Ohio (18) and St. Louis (20). Other financially healthy metros include Knoxville, Tennessee (12th on the list), in the South, and Rochester, New York (16), in the Northeast. According to LendingTree analysts, the cities near the top of the ranking tend to have solid household incomes and reasonable living costs. Those qualities go hand in hand with good credit. 'So much of this whole report gets down to income and credit scores,' said Matt Schulz, chief consumer finance analyst at LendingTree. 'While income doesn't go into your ability to get a credit card, for example, it plays a major role in setting how much of a credit limit you get once you do get the card.' Five cities where consumers live within their means Here are snapshots of the top 5 metros for financial health: If the most 'financially responsible' metros have anything in common, apart from geography, it might be cost of living. Some of the nation's most notoriously costly cities, including New York, Boston, San Francisco and Seattle, sit further down the list. (San Jose is a notable exception.) 'There's not much substitute for having a low cost of living,' Schulz said. 'It impacts everything you do financially.' Five ways to improve your credit score Three of the five metrics in the LendingTree analysis concern credit. Maxed-out cards and excessive credit inquiries tend to hurt a consumer's credit score. A lower credit score can mean higher interest rates on loans and lower limits on credit cards. Here, then, are five expert tips for building a better credit score. Pay bills on time The biggest component of a FICO credit score, 35%, is 'payment history.' It means, quite simply, paying your bills on time. That means 'not missing any of your payments, especially more than 30 days,' said Sara Rathner, credit cards expert at NerdWallet, speaking to USA TODAY in June. 'All of the hard work you've been doing can be undone with one missed payment.' Credit cards, mortgages, rent, utilities: Just about anything can show up on a credit report as delinquent, if the creditor takes the time to report it. Try to make payments on time, Rathner said. If you miss a payment, correct the oversight quickly. Don't use too much credit The second-largest factor in a credit report, accounting for 30%, is 'amounts owed.' That metric refers to credit utilization: how much of your available credit you actually use. The goal is to use as little of your available credit as possible. Having a higher credit limit – and more credit cards − can help keep your utilization rate low, provided you use credit carefully. Pay off your cards every month, if you can, experts say. Try not to use too much of your available credit. 'I think the best practice here is to try to keep your utilization under 30%,' said Joel O'Leary, personal finance writer at Motley Fool Money, speaking to USA TODAY in June. 'But I think the sweet spot is 10%, or even less than 10%.' Build a credit history Length of credit history accounts for 15% of a credit score. This metric is all about time: How long your credit accounts have been open, their average age, and how often you use them. It's smart to keep old, zero-balance credit card accounts open, experts say, especially if they carry no annual fee. Keeping them active will boost your available credit, while also documenting your credit history. Monitor your credit report Nearly half of all credit reports may contain errors, according to research by the consumer groups Consumer Reports and WorkMoney. Some errors can lower your credit score. Consumers should review their credit reports at least once a year, experts say. You can access your reports at no cost on the website If you find an error, report it to the credit bureau. If the error is on a specific account, you can also contact the company directly. Beware of 'hard' credit inquiries Any time you apply for new credit and the creditor pulls your file, it can affect your credit score. These are called 'hard inquiries,' and they can influence your score for 12 months, according to Experian. You'll typically incur a hard inquiry if you apply for a credit card, auto loan or mortgage, among other scenarios. The takeaway: Be careful about triggering too many credit inquiries.
Newsweek
11-07-2025
- Business
- Newsweek
Map Shows Cities Where People Are Most Financially Responsible
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Where you live can play a significant role in your finances. With cost of living, inflation, housing and food costs all somewhat dependent on the area you live in, Americans' personal financial habits can vary drastically by location. A new report from LendingTree ranked the most and least financially responsible metros based on debt-to-income (DTI) ratios, credit inquiries, maxed-out credit cards, spending on housing costs and low credit utilization rates. Tied for the top spot were Des Moines, Iowa, and San Jose, California, with low housing costs and debt-to-income ratios. Why It Matters U.S. households collectively owe $18.203 trillion in debt in 2025, according to the Motley Fool. While mortgages make up 70 percent of this, your personal finances and debt can play a major role in overall quality of life. With poor finances, car and home loans will likely be rejected and life decisions like starting a family or getting married could be delayed significantly. What To Know Des Moines was one of the most financially responsible cities, with only 18.9 percent of households spending 35 percent or more of their income on housing, the fourth lowest across 100 of the largest metros. San Jose had the lowest debt-to-income ratio at 51 percent, tying with Syracuse, New York, and Harrisburg, Pennsylvania. And 76.6 percent of cardholders kept their utilization below 30 percent. Also in the top five were Madison, Wisconsin; Minneapolis, Minnesota; and Pittsburgh, Pennsylvania. Madison had a top spot as it boasted the lowest percentage of cardholders having at least one maxed-out card, at just 16.3 percent. The Visa, Mastercard and American Express logos on various credit and debit cards beside a U.S. $1 bill. The Visa, Mastercard and American Express logos on various credit and debit cards beside a U.S. $1 Financially Responsible Metros Some cities on the list stood out as residents were some of the least financially responsible across the country. Claiming the worst spot was McAllen, Texas, which had the highest average number of credit inquiries over the past two years (6.7), the largest share of cardholders with at least one maxed-out card (35.8 percent) and the lowest rate of cardholders with a utilization below 30 percent (43.0 percent). "That struggle is almost certainly made worse by the fact that McAllen residents tend to have lower incomes and lower credit scores than people in other big cities around the country," Matt Schulz, LendingTree chief consumer finance analyst, said in the report. "Lower credit scores make it harder to get credit, and lower income means that if you do qualify for a credit card, your credit limit probably won't be very high. That makes for a challenging situation for McAllen residents, leaving them precious little wiggle room financially." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast as well as a Texas native, echoed the sentiment. "A lot of what you see—the big houses, the glitz, the glamour—is often a mirage, masking high levels of debt and financial instability beneath the surface," Thompson told Newsweek. "McAllen continues to struggle with high poverty rates, and many residents face ongoing challenges with housing affordability." Riverside, California, and Miami, Florida, also landed in the bottom three. While Riverside had by far the worst debt-to-income ratio at 251 percent, Miami saw housing costs dampen finances. Roughly 37.6 percent of households spent 35 percent or more of their income on housing. Also in the bottom five were Virginia Beach, Virginia, and Las Vegas, Nevada. What People Are Saying Matt Schulz, LendingTree chief consumer finance analyst, in the report: "Obviously, there's discipline required to live within your means no matter how much you make or where you live, but it shouldn't surprise anyone that making more money or living in a lower-cost area would make that easier." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Some areas are simply disadvantaged from the start. McAllen may have a lower cost of living, but the economic opportunity hasn't kept pace with the region's basic needs. Long term, these struggles are likely to persist, and the economic divide will continue to widen—forcing many to leave in search of higher incomes elsewhere. As a result, we'll likely see continued population growth in cities where jobs are more plentiful, even if affordability remains a challenge." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The common theme with these findings isn't where these cities are located, but rather the financial principles their residents are using to be responsible with their money. Whether you're in a high income city like San Jose or a more mid-range one like Des Moines doesn't matter. It's about being better at saving, keeping your credit utilization low, and avoiding crippling amounts of debt." What Happens Next Because the cities that ranked at the top and the bottom were scattered across the country, experts say your personal finance habits are just as, if not more, important than the exact city or region you live in. "The metros that rank are incredibly diverse, both in personal and in business income, but that's a testament to the lesson many Americans need to learn," Beene said. "In the end, your financial outlook is less about income and more about the outcomes."
Yahoo
23-06-2025
- Business
- Yahoo
5 Top Cities With the Best Housing Market Outlook — All Are in the South
Home sellers have held the upper hand in the United States for several years, as tight inventories and a slowdown in construction led to record high prices. But that dynamic has begun to shift this year due to a slowdown in home sales and an increase in the number of units for sale. Explore More: Find Out: 'Homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms,' Lawrence Yun, chief economist at the National Association of Realtors, said in a recent report on slowing U.S. home sales. This is especially true in the South, which dominates a list of cities with the best housing market outlook as ranked by LendingTree. Here are the five U.S. cities with the best housing market outlooks, according to LendingTree. Vacancy rate: 12.59% Housing unit approvals per 1,000: 24.42 Home value-to-income ratio: 2.37 Change in ratio, 2022-23: 3.90% Vacancy rate: 21.16% Housing unit approvals per 1,000: 39.78 Home value-to-income ratio: 4.45 Change in ratio, 2022-23: 1.51% Vacancy rate: 10.13% Housing unit approvals per 1,000: 18.07 Home value-to-income ratio: 3.32 Change in ratio, 2022-23: 2.98% Vacancy rate: 14.25% Housing unit approvals per 1,000: 10.72 Home value-to-income ratio: 3.37 Change in ratio, 2022-23: 2.49% Vacancy rate: 15.90% Housing unit approvals per 1,000: 17.36 Home value-to-income ratio: 3.11 Change in ratio, 2022-23: 4.89% LendingTree based its rankings on four key metrics: vacancy rates, housing unit approvals per 1,000 housing units, home value-to-income ratio, and annual changes in home value-to-income ratio. From a homebuyer's standpoint, high vacancy rates indicate that there are plenty of unoccupied homes in a particular city. This is usually a sign that there's not much competition for homes, which means you can find good deals. Read More: A low home value-to-income ratio is another sign that you can find affordable homes. If the ratio is 2.5, for example, it means median home values are only 2.5 times more than the median income. In a city with a median income of $60,000 and a ratio of 2.5, you should be able to find homes for as little as $150,000. But if the ratio is 5.0, you're looking at homes of $300,000 or higher. Nine of the 10 cities ranked by LendingTree as having the best housing market outlook for buyers are located in the South. That includes each of the top five cities. High vacancy rates partly explain why Southern cities rank high, according to Matt Schulz, LendingTree's chief consumer finance analyst and author of 'Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.' But there are other reasons, as well. 'Many of these are relatively low-income areas,' Schulz said in a press release. 'Plus, Southern metros don't tend to be as densely packed, especially compared to their Northeastern counterparts, meaning there's more room to build and grow. More available property tends to mean lower costs.' More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 5 Top Cities With the Best Housing Market Outlook — All Are in the South
Business Insider
20-06-2025
- Business
- Business Insider
Meet America's typical live-at-home 20-somethings
In 2023, around 40% of younger Americans lived with their parents. Living with mom and dad is a popular safety net for Gen Zers who face steep housing costs, expensive higher education, and a shaky job market. "If you have the luxury of being able to move back home and pay less for rent, groceries, and other basic bills and put some money away in an emergency fund or towards other big financial goals, it can be a really big deal," Matt Schulz, chief consumer finance analyst at LendingTree, told Business Insider. BI examined the demographics of America's live-at-home young adults — the 42% of 18- to 30-year-olds who lived with at least one parent — using the 2023 American Community Survey, available from the University of Minnesota's Integrated Public Use Microdata Series. So, who made up that 42%? The charts below show the young adults who were more likely to be living at home. A majority of young adults living with at least one parent were men Over half of young adults living with at least one parent were men, while just under half of young adults not living with a parent were men. There's also a cultural element to multigenerational living. Pew Research Center found Black, Hispanic, and Asian young adults in the US were more likely than white young adults to live with their parents. Young adults living with at least one parent were more likely not to be in school The share of young adults living with at least one parent in the household who were in school was about double that of those living on their own — 39% compared to 20%. They're less likely to have a college degree Fourteen percent of young adults with at least one parent in the household had a bachelor's degree as their highest educational attainment, compared to 27% of those without a parent. Single young adults were more likely to live with at least one parent More young adults without a parent in the household were married than those living with at least one parent. Nearly all young adults living with at least one parent were never married or single, at 96%. They're not stay-at-home kids; they're more likely to be working than not Almost two-thirds of young adults with at least one parent in the household were employed, compared to 82% of young adults without a parent in the household. The share of young adults living at home who were out of the labor force — that is, neither employed nor looking for work — was nearly double that of those living on their own. While many were employed, they weren't earning as much as those not living with a parent On average, employed young adults with at least one parent in the household weren't working as many hours or making as much money as their peers who didn't have a parent in the household. According to Pew Research Center researcher Richard Fry, who authored a recent report on where in the country younger Americans live with their parents, young people are more likely to live with their parents when jobs are hard to come by and wages are stagnant. Pew previously found the share of people living in multigenerational households surged during the Great Recession and continued rising afterward. Living at home can also mean being disconnected from work and school There are those who choose to live at home for family connection and financial convenience, and there are others who don't have a choice. So-called disconnected youth who aren't employed or in school made up about 11% of the 16 to 24 age group in 2022, per a 2024 report from the research firm Measure of America. This cohort was more likely than their peers to live in poverty, lack health insurance, and receive government aid. Minorities and young people of color have higher rates of disconnection. "These are creative young people who, for a whole host of reasons, haven't had the opportunities or the support they've needed to explore what they want to do and figure out how to transition to adulthood in a way that's exciting for them," said Megan Millenky, a senior research associate at MRDC who studies youth development.
Business Insider
20-06-2025
- Business
- Business Insider
Meet America's typical live-at-home 20-somethings
Your parents' basement might be looking pretty good these days. In 2023, around 40% of younger Americans lived with their parents. Living with mom and dad is a popular safety net for Gen Zers who face steep housing costs, expensive higher education, and a shaky job market. "If you have the luxury of being able to move back home and pay less for rent, groceries, and other basic bills and put some money away in an emergency fund or towards other big financial goals, it can be a really big deal," Matt Schulz, chief consumer finance analyst at LendingTree, told Business Insider. BI examined the demographics of America's live-at-home young adults — the 42% of 18- to 30-year-olds who lived with at least one parent — using the 2023 American Community Survey, available from the University of Minnesota's Integrated Public Use Microdata Series. So, who made up that 42%? The charts below show the young adults who were more likely to be living at home. A majority of young adults living with at least one parent were men Over half of young adults living with at least one parent were men, while just under half of young adults not living with a parent were men. There's also a cultural element to multigenerational living. Pew Research Center found Black, Hispanic, and Asian young adults in the US were more likely than white young adults to live with their parents. Young adults living with at least one parent were more likely not to be in school The share of young adults living with at least one parent in the household who were in school was about double that of those living on their own — 39% compared to 20%. They're less likely to have a college degree Fourteen percent of young adults with at least one parent in the household had a bachelor's degree as their highest educational attainment, compared to 27% of those without a parent. Single young adults were more likely to live with at least one parent More young adults without a parent in the household were married than those living with at least one parent. Nearly all young adults living with at least one parent were never married or single, at 96%. They're not stay-at-home kids; they're more likely to be working than not Almost two-thirds of young adults with at least one parent in the household were employed, compared to 82% of young adults without a parent in the household. The share of young adults living at home who were out of the labor force — that is, neither employed nor looking for work — was nearly double that of those living on their own. While many were employed, they weren't earning as much as those not living with a parent On average, employed young adults with at least one parent in the household weren't working as many hours or making as much money as their peers who didn't have a parent in the household. According to Pew Research Center researcher Richard Fry, who authored a recent report on where in the country younger Americans live with their parents, young people are more likely to live with their parents when jobs are hard to come by and wages are stagnant. Pew previously found the share of people living in multigenerational households surged during the Great Recession and continued rising afterward. Living at home can also mean being disconnected from work and school There are those who choose to live at home for family connection and financial convenience, and there are others who don't have a choice. So-called disconnected youth who aren't employed or in school made up about 11% of the 16 to 24 age group in 2022, per a 2024 report from the research firm Measure of America. This cohort was more likely than their peers to live in poverty, lack health insurance, and receive government aid. Minorities and young people of color have higher rates of disconnection. "These are creative young people who, for a whole host of reasons, haven't had the opportunities or the support they've needed to explore what they want to do and figure out how to transition to adulthood in a way that's exciting for them," said Megan Millenky, a senior research associate at MRDC who studies youth development. In an unsteady economy, it's unlikely that Gen Z and younger millennials' interest in living at home will fade anytime soon. And, as Millenky said, the group reflects "quite a spectrum" of America's socioeconomic ladder.
