States with credit ratings in the dumps

Bankrate Audio » States With Credit Ratings In Dumps

Listen to audio

Editor's note: This is a transcript of the audio file.

Does your state have crummy credit? I'm Doug Whiteman with your Personal Finance Minute.

You have a credit score that indicates whether you're a good credit risk. In a similar way, states have credit ratings that reflect their ability to pay debts and the strength of their economies. Six states earn lower ratings than most in the latest list from rating agency Standard and Poor's. California is in last place because of state budget issues, though S-and-P said last winter that the outlook for the Golden State has improved. One rung up from the bottom is Illinois, which has had stubborn budget problems and has heavy pension obligations. Then come three states that have been hit hard by various economic factors. There's Arizona, which has been slammed by the housing crisis; Kentucky, which has been weathering a loss of manufacturing jobs; and Michigan, which has felt fallout from the auto industry. The last of the sagging six is New Jersey, whose finances have been strained by pensions, high debt levels and generous unemployment benefits.

For more on states with credit in the dumps visit I'm Doug Whiteman.


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.86% --0.00 15.86%
Cash Back Cards 16.37% --0.00 16.37%
Low Interest Cards 11.10% --0.00 11.10%
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.


Credit Card Blog

Jeanine Skowronski

CFPB unveils payday loan plan

The oft-maligned payday lending industry may be about to get a makeover.  ... Read more

Partner Center

Connect with us