Brooklyn’s credit not too bad, according to NY Fed report
But still not prime
Most Brooklynites don’t need to cut up their credit cards, according to a report issued on Monday by the Federal Reserve Bank of New York.
Roughly 80 percent of Brooklyn residents are paying off their credit cards on time, the New York Fed says in its report called “Community Credit: A New Perspective on America’s Communities.” The study looks at the credit “well-being” of communities across the U.S.
Brooklyn does lag a bit behind most of the other boroughs, however. The data shows that 87 percent of Manhattanites have good credit, with Queens edging Brooklyn at 83 percent and Staten Island at 82 percent. Brooklyn does beat the Bronx: roughly 73 percent of Bronx residents have good credit. (Statewide, 83 percent of residents have good credit.)
Still, seven percent of those who don’t have good credit in Brooklyn are listed as “improving,” while only one percent are declining.
Not quite prime
Brooklyn also falls a little behind most of the other boroughs when it comes to other credit indicators.
Fewer Brooklynites even have credit scores, compared to most of the other boroughs. Only 72.5 percent of Brooklynites over the age of 18 have a credit file and a credit score, compared to 81.1 percent of Manhattanites. In Staten Island, 87.6 percent have a credit file and score. In Queens, that’s 79.4 percent; in the Bronx, it’s 67.3 percent.
When it comes to prime credit risks, (as measured by the percent of credit users with an Equifax Risk Score of 720+), Brooklyn beats only the Bronx. Only 47.5 percent of Brooklyn’s credit users qualify as prime. By comparison, roughly 61.2 percent of Manhattanites are listed as prime risks. In Queens, 52.4 percent are rated as prime. In Staten Island, 54.6 percent get the prime rating, versus 31.5 percent in the Bronx. (Statewide, 54 percent of credit users have a prime rating.)
On the bright side, roughly 42.2 percent of Brooklyn credit users don’t max out their cards every month, which roughly matches Manhattan.
The analysis used data collected anonymously from Equifax credit reporting service from 2006 through 2015.
While the report shows an improvement in several indicators of credit health since the financial crisis, there still remains considerable variation in credit well-being across regions, states and counties, the bank says.
“After a far-reaching financial crisis, Americans are beginning to see their credit access improve and financial health return. Despite national improvement, many hard hit communities continue to struggle,” Kausar Hamdani, Senior Advisor at the New York Fed, said in a statement.
For the full report, visit the New York Fed’s website.
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