With the rising cost of goods and stagnant wages, many Americans are finding it difficult to cover basic expenses. A Forbes Advisor study surveyed people in the 25 largest U.S. cities and highlighted the extent to which credit cards are relied upon for everyday expenses. Overall, 56% of respondents have accumulated credit card debt to buy groceries and 24% lack alternative methods to cover essential costs without credit. Las Vegas was found to have the highest dependence on credit cards and Seattle had the lowest.
Top Five Cities That Are Most Reliant on Credit Cards for Essential Living Expenses
Las Vegas, Nevada
Las Vegas’ score: 100 out of 100
- More than two-thirds (68%) of residents accrue debt to cover grocery bills.
- Nearly half of locals use credit card debt to pay for utilities (48%).
- Las Vegas has more residents who would be unable to pay for essentials without a credit card (39%) than any other city.
Philadelphia, Pennsylvania
Philadelphia’s score: 95.26 out of 100
- Philadelphia has the second-highest percentage of residents who are unable to pay off basic expenses on their credit card occasionally (39%).
- It also has the third-highest percentage of residents accruing card debt to purchase basic clothing (39%).
Denver, Colorado
Denver’s score: 94.93 out of 100
- Tied with Las Vegas, Denver has the highest percentage of residents who report accumulating debt to cover groceries (68%).
- Almost half (48%) of Denver respondents report using credit card debt to pay transportation expenses.
- The mile-high city has the highest percentage of residents who are frequently unable to pay off basic living expenses charged on their credit card (37%)
Phoenix, Arizona
Phoenix’s score: 84.94 out of 100
- Phoenix has the second-highest percentage of respondents accruing credit card debt to cover utility expenses (47%).
- It also has the fourth-highest percentage of respondents who are unable to cover basics without a credit card (34%).
Washington, District of Columbia
D.C.’s score: 77.37 out of 100
- The nation’s capital has the third-highest percentage of residents accruing credit card debt to cover transportation (40%).
- D.C. is also home to the fourth-highest percentage of respondents unable to pay off basic expenses charged on their credit card occasionally (37%).
Methodology
Best Cash-Back Credit Cards Methodology
Forbes Advisor combed through the profiles of dozens of cash-back credit cards. We focused on major banks and standout credit cards at lesser-known banks with online accessibility. We looked for credit cards that outperformed other cards in terms of cash-back rates and categories, fees, welcome bonuses, and other rewards and features.
Cards are then compared against other similar cards, in this case, cards offering cash-back rewards.
Forbes Advisor re-evaluates each credit card list at least every six months to determine if any cards need to be added and/or removed. However, a list could be updated sooner if significant changes are made to the mentioned cards or if a new credit card is announced that’s likely to impact the category.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates credit cards.
To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
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²Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.