15 States Where the Most People Lack Credit Cards

Editor's Note: This story originally appeared on Upgraded Points.

Credit cards are a staple of the American financial system. However, credit has been harder to come by for many consumers in the U.S.

Rapidly rising inflation in 2021 and 2022 motivated the U.S. Federal Reserve to embark on a series of interest rate hikes that have continued into this year. As interest rates have risen, it has become more expensive for banks to borrow money.

In this environment, more people’s credit card applications are being denied.

Common reasons for rejection include low credit scores, high levels of debt, a history of late payments or bankruptcy, and insufficient income.

But the biggest obstacle for many applicants is a “chicken or the egg” dilemma: It’s harder for someone to get approved for credit if they don’t already have a credit history.

Certain regions of the country are more likely to lack credit cards. Here are the states where the most people lack credit cards. See the methodology behind the ranking at the end.

1. Mississippi

• Share of Households Without Credit Cards: 50.2%
• Total Households Without Credit Cards: 599,890
• Share of Households That Are Unbanked: 11.1%
• Share of Households That Are Underbanked: 21.4%

2. Louisiana

• Share of Households Without Credit Cards: 47.6%
• Total Households Without Credit Cards: 892,976
• Share of Households That Are Unbanked: 8.1%
• Share of Households That Are Underbanked: 20.2%

3. Alabama

• Share of Households Without Credit Cards: 43.5%
• Total Households Without Credit Cards: 889,575
• Share of Households That Are Unbanked: 4.7%
• Share of Households That Are Underbanked: 13.3%

4. South Carolina

• Share of Households Without Credit Cards: 38.8%
• Total Households Without Credit Cards: 864,464
• Share of Households That Are Unbanked: 5.5%
• Share of Households That Are Underbanked: 16.1%

5. West Virginia

• Share of Households Without Credit Cards: 37.4%
• Total Households Without Credit Cards: 287,980
• Share of Households That Are Unbanked: 3.0%
• Share of Households That Are Underbanked: 12.4%

6. North Carolina

• Share of Households Without Credit Cards: 37.0%
• Total Households Without Credit Cards: 1,654,640
• Share of Households That Are Unbanked: 3.3%
• Share of Households That Are Underbanked: 13.9%

7. Kentucky

• Share of Households Without Credit Cards: 35.5%
• Total Households Without Credit Cards: 630,480
• Share of Households That Are Unbanked: 5.2%
• Share of Households That Are Underbanked: 16.1%

8. Texas

• Share of Households Without Credit Cards: 35.4%
• Total Households Without Credit Cards: 3,973,650
• Share of Households That Are Unbanked: 5.6%
• Share of Households That Are Underbanked: 18.4%

9. Oklahoma

• Share of Households Without Credit Cards: 35.3%
• Total Households Without Credit Cards: 577,155
• Share of Households That Are Unbanked: 5.4%
• Share of Households That Are Underbanked: 20.5%

10. Georgia

• Share of Households Without Credit Cards: 35.1%
• Total Households Without Credit Cards: 1,515,618
• Share of Households That Are Unbanked: 6.7%
• Share of Households That Are Underbanked: 17.3%

11. Arkansas

• Share of Households Without Credit Cards: 33.6%
• Total Households Without Credit Cards: 429,408
• Share of Households That Are Unbanked: 3.4%
• Share of Households That Are Underbanked: 15.9%

12. Nevada

• Share of Households Without Credit Cards: 33.5%
• Total Households Without Credit Cards: 420,090
• Share of Households That Are Unbanked: 5.6%
• Share of Households That Are Underbanked: 17.8%

13. Tennessee

• Share of Households Without Credit Cards: 33.4%
• Total Households Without Credit Cards: 966,262
• Share of Households That Are Unbanked: 5.0%
• Share of Households That Are Underbanked: 13.3%

14. New Mexico

• Share of Households Without Credit Cards: 31.9%
• Total Households Without Credit Cards: 282,315
• Share of Households That Are Unbanked: 7.0%
• Share of Households That Are Underbanked: 16.7%

15. Indiana

• Share of Households Without Credit Cards: 31.4%
• Total Households Without Credit Cards: 865,384
• Share of Households That Are Unbanked: 5.6%
• Share of Households That Are Underbanked: 12.1%

Methodology

The data used in this analysis is from the 2021 Federal Deposit Insurance Corporation’s (FDIC) National Survey of Unbanked and Underbanked Households.

To determine the states where the most people lack credit cards, researchers at Upgraded Points calculated the share of households that did not possess any Visa, Mastercard, American Express, or Discover credit cards in the past 12 months.

In the event of a tie, the state with the greater total of households without credit cards was ranked higher.

Note, for the purposes of this analysis, unbanked households are those without a checking or savings bank account.

Underbanked households were considered to be those households with a checking or savings bank account but who also relied on alternative financial services, such as check cashing, money orders, international remittances, payday loans, rent-to-own services, pawn shop loans, refund anticipation loans, and auto title loans.