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There is no shortage of advice given to millennials these days, no matter the topic. How to manage their personal finances is certainly high on the list. Despite the unsolicited counsel, staying on top of credit card debt is one piece of advice all generations should hear.
Millennials occupy two distinct credit landscapes: Half of them are in their 20s and just starting to flex their new credit freedom, while the other half are in their 30s and likely contemplating bigger credit (and life) decisions. Those decisions can help or hurt their finances moving forward.
As part of Experian's ongoing analysis of millennials and credit, we looked at data from the second quarter (Q2) of 2019 to examine their credit card debt, the two groups within the generation, and where millennials have the highest credit card balances in the U.S.
How Much Credit Card Debt Do Millennials Have?
Millennials accounted for about 20% of all credit card debt in Q2 2019, an increase of 2 percentage points year over year. Their generation was the only one to see a marked increase in overall credit card balances in Q2 2019. Since 2015, millennials have seen their average FICO® Scores☉ increase 17 points and their average credit card balance increase by $1,390.
| Millennials | 2015 | 2019 | Difference |
|---|---|---|---|
| Average FICO® Score | 651 | 668 | 17 |
| Average Credit Card Balance | $3,499 | $4,889 | $1,390 |
Source: Experian Q2 data from each year
Looking at millennials in their 20s compared with those in their 30s provides insight into consumers just starting out in the credit space and those who are more established. Younger millennials have lower credit scores and less debt than their 30-something counterparts.
| Millennials 23 to 30 years old | 2015 | 2019 | Difference |
|---|---|---|---|
| Average FICO® Score | 649 | 661 | 12 |
| Average Credit Card Balance | $1,993 | $3,441 | $1,448 |
Source: Experian Q2 data from each year
Not surprisingly, older millennials have increased their FICO® Scores by a wider margin while also maintaining higher credit card balances. As consumers get older, their credit card balances continue to rise until about their 50s. In fact, credit card balances peaked at age 50 in the Q2 2019 data.
| Millennials 31 to 38 years old | 2015 | 2019 | Difference |
|---|---|---|---|
| Average FICO® Score | 654 | 674 | 19 |
| Average Credit Card Balance | $4,129 | $5,861 | $1,732 |
Source: Experian Q2 data from each year
Now let's take a look at the cities where millennials carry the highest average credit card balance in each state and the top 50 cities in the U.S. by average millennial credit card balance.
Cities Where Millennials Carry the Highest Credit Card Balances
Beverly Hills, California, is home to the highest average credit card balance among millennials at $12,136, according to Experian Q2 2019 data. That's a 6% increase year over year from $11,404 in Q2 2018 and more than double the national average millennial credit card balance of $4,889. In Burlington, Vermont, millennials carried the lowest average credit card balance of $3,801, which is up 7% from their average balance of $3,540 in 2018.
Top 50 U.S. Cities With Highest Millennial Credit Card Balances
When we ranked the top 50 cities in the United States by the highest credit card balances among millennials, California was home to 10 cities. A few other well-populated states were also represented, as Texas had nine cities ranked in the top 50, followed by Florida with eight and Virginia with six.
| Top 50 Cities Ranked by Highest Credit Card Debt Among Millennials | |||
|---|---|---|---|
| Rank | City | State | Balance |
| 1 | Beverly Hills | CA | $12,136 |
| 2 | Monsey | NY | $8,660 |
| 3 | Coral Gables | FL | $8,524 |
| 4 | Encino | CA | $7,852 |
| 5 | Sherman Oaks | CA | $7,368 |
| 6 | Santa Monica | CA | $7,349 |
| 7 | Newport Beach | CA | $7,303 |
| 8 | Suffolk | VA | $7,195 |
| 9 | The Woodlands | TX | $7,141 |
| 10 | Leander | TX | $7,024 |
| 11 | Santa Clarita | CA | $7,009 |
| 12 | Frisco | TX | $7,005 |
| 13 | Forney | TX | $6,954 |
| 14 | Rockwall | TX | $6,942 |
| 15 | Wayne | NJ | $6,913 |
| 16 | Winter Garden | FL | $6,882 |
| 17 | West Orange | NJ | $6,877 |
| 18 | Wellington | FL | $6,874 |
| 19 | Valley Stream | NY | $6,872 |
| 20 | Boca Raton | FL | $6,849 |
| 21 | New York | NY | $6,833 |
| 22 | Chesapeake | VA | $6,715 |
| 23 | Bethesda | MD | $6,697 |
| 24 | Little Elm | TX | $6,692 |
| 25 | Brookhaven | GA | $6,685 |
| 26 | Oak Harbor | WA | $6,666 |
| 27 | Parker | CO | $6,664 |
| 28 | Castle Rock | CO | $6,653 |
| 29 | Stafford | VA | $6,652 |
| 30 | Wasilla | AK | $6,645 |
| 31 | League City | TX | $6,632 |
| 32 | West Bloomfield | MI | $6,623 |
| 33 | Tomball | TX | $6,617 |
| 34 | Menifee | CA | $6,615 |
| 35 | Miami Beach | FL | $6,604 |
| 36 | Jupiter | FL | $6,560 |
| 37 | Upper Marlboro | MD | $6,556 |
| 38 | Ewa Beach | HI | $6,510 |
| 39 | Redondo Beach | CA | $6,491 |
| 40 | Cutler Bay | FL | $6,487 |
| 41 | McLean | VA | $6,472 |
| 42 | Ashburn | VA | $6,471 |
| 43 | Virginia Beach | VA | $6,454 |
| 44 | Cumming | GA | $6,439 |
| 45 | Delray Beach | FL | $6,425 |
| 46 | Granada Hills | CA | $6,394 |
| 47 | Murrieta | CA | $6,377 |
| 48 | Spring | TX | $6,371 |
| 49 | Woodland Hills | CA | $6,370 |
| 50 | Grovetown | GA | $6,348 |
Source: Experian Q2 2019 data
Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
FICO® is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.