Texas cities see sharp rise in credit card delinquencies as economic pressures mount

Plano residents fell behind on nearly 18% more credit card payments in the first quarter of 2025 compared to the same period last year, marking the second-highest increase in credit card delinquency among the nation’s 100 largest cities.

The Dallas suburb joins 11 other Texas cities experiencing rising credit card delinquency rates, signaling growing financial stress across the state as persistent inflation and higher interest rates strain household budgets.

WalletHub’s analysis of proprietary user data shows Plano’s delinquency rate reached 19.21% in the first quarter, with residents struggling on nearly one in five credit card accounts. The financial services company attributes the spike to poor financial habits rather than economic conditions alone.

“Plano’s elevated credit card delinquency may reflect deeper issues with financial habits,” the report states, noting the city’s residents carry relatively high credit card debt levels while scoring below average on budgeting performance.

The trend extends beyond Plano’s affluent suburbs. Garland posted a 9.15% increase in delinquent accounts, while Austin saw an 8.28% jump despite maintaining one of the state’s lower overall delinquency rates at 17.59%.

Fort Worth residents fell behind on nearly 8% more credit card payments, pushing the city’s delinquency rate to 23.19% — among the highest of Texas cities analyzed.

Even major metropolitan areas felt the squeeze. Houston recorded a 4.76% increase in delinquencies, while Dallas saw a 4.47% rise. Both cities maintained delinquency rates just above 21%.

The increases reflect broader economic pressures hitting Texas households. Rising costs for housing, food and other essentials have left many residents relying more heavily on credit cards to maintain their spending patterns.

Financial experts point to the double burden of inflation eroding purchasing power while higher interest rates make existing credit card balances more expensive to carry.

“Persistent inflation and higher interest rates may be straining household budgets, making it harder for many residents to stay current on payments,” according to the WalletHub analysis.

The Texas pattern mirrors a national trend, with cities across the country reporting significant increases in credit card delinquencies. Fremont, California, topped the national rankings with a 28.66% increase in delinquent accounts.

California cities dominated the worst-performing list, claiming six of the top 20 spots. Even typically affluent areas like Seattle and Washington, D.C., reported double-digit percentage increases in credit card delinquencies.

The national data suggests the financial stress extends beyond traditional economic indicators, hitting even cities with strong job markets and higher median incomes.

WalletHub analyzed credit card delinquency data from the 100 largest U.S. cities, comparing first-quarter 2024 rates with first-quarter 2025 figures. The study focused on the percentage of credit card accounts where payments fell 30 days or more behind schedule.

Financial advisors recommend several strategies for avoiding delinquency: creating realistic budgets, monitoring spending closely, setting up automatic minimum payments, building emergency funds and communicating with creditors before missing payments.

For residents already behind on payments, experts suggest acting quickly to get current before the 30-day delinquency mark appears on credit reports.

Texas Cities Credit Card Delinquency Rankings

Rank Among 100 Cities | City | Delinquency Rate Q1 2025 | Increase from Q1 2024

2. Plano – 19.21% – 17.57% increase
3. Garland – 21.15% – 9.15% increase
4. Austin – 17.59% – 8.28% increase
5. Fort Worth – 23.19% – 7.96% increase
6. Lubbock – 22.82% – 7.71% increase
7. El Paso – 20.36% – 7.37% increase
8. San Antonio – 21.54% – 6.87% increase
9. Houston – 21.32% – 4.76% increase
10. Dallas – 21.01% – 4.47% increase
11. Corpus Christi – 21.18% – 3.52% increase
12. Irving – 19.13% – 2.47% increase
13. Arlington – 22.32% – 2.01% increase
14. Laredo – 22.20% – 0.97% increase