Small business grants provide money that, unlike loans, don’t typically have to be paid back. Business owners can use this money to take their businesses to the next level. And if you’re a female entrepreneur, you may qualify for female-owned business grants that provide capital you can use for your business, from launching it to expanding to a new location.
Below, you’ll find a list of 30 small business grants for women. However, if you’re newer to the process or not ready to apply, we’ll also cover:
- What a small business grant is
- What you can do with a female-owned business grant
- Tips on applying for small business grants for women
What Are Small Business Grants for Women?
Small business grants are lump sums of money you can use to do things like launch a business, buy equipment, hire staff, or grow your business. Unlike business loans, however, you do not have to pay back grants.
While there are small business grants for anyone who owns a business, some grants are specifically for female-owned businesses. Why? Women sometimes don’t have the same opportunities that men do in the business world, so many companies and government organizations want to provide them with the opportunity to get a leg up.
There are many grants for female entrepreneurs. However, small business grants for women are frequently reserved for established businesses. So, if you’re just starting, it’s a good idea to look for grants that are specifically for startups.
Remember: You aren’t restricted to female-owned business grants. There are grants for small business owners, minorities, and veterans that may also be worth exploring.
After extensive research, we narrowed our list to 30 small business grants for women entrepreneurs. However, new ones pop up all the time, so this list is not exhaustive.Here are our top small business grants for women.
1. Amber Grant for Women
The Amber Grant, provided by WomensNet, honors the memory of a young woman, Amber Wigdahl, who died at 19 before realizing her business dreams. The grant awards $10,000 to female entrepreneurs each month. One $25,000 winner will be selected from the monthly winners each year.Qualifications:
- Must have a business or business idea. The Amber Grant is unique because it’s not limited to women who already have an established business. If you’re able to explain how you plan to start and grow a new business, you can apply for this grant.
- Requires a $15 application fee
2. Cartier Women’s Initiative
The Cartier Women’s Initiative offers female-owned business grants of either $30,000 or $100,000 to women looking to make a difference in the world. In addition to the funds, winners also receive business and financial coaching.The Cartier Women’s Initiative currently offers two grants for women business owners:The Science and Technology Pioneer Award: Awarded to women entrepreneurs who are leaders and innovators in science and technology. This grant is open to any women in any sector and country. The winner will receive $100,000 and the two runners-up will receive $30,000.The qualifications for the Science and Technology Pioneer Award are as follows:
- A woman must be the:
- Primary leader at the company
- Founder and majority shareholder of founder equity
- The business must be:
- Developing a new technology, process, or scientific discovery
- A for-profit business
- An early-stage business with a proof of concept or prototype that’s already in existence or currently in the works. The final product must not have been commercialized for more than five years.
- Meet at least one of the United Nations’ Sustainable Development Goals
- The applicant must:
- Be at least 18 years of age by the application deadline
- Have a good command of the English language; the grant requires Level B2 and above per the Common European Framework of Reference
- Commit to participating in the fellowship program
Regional Awards: This small business grant is awarded to 21 women across the globe with early-stage companies that are generating revenue. Cartier is looking for women entrepreneurs who leverage an existing technology, model, or process in an innovative way. The seven winners will each receive $100,000 and 14 runners-up will receive $30,000.The qualifications for the Regional Awards are:
- A woman must be the:
- Primary leader at the company
- Founder and majority shareholder of founder equity
- The business must:
- Be for-profit
- Be in the early stages with a proven business model, with one and five years of operations
- Have generated revenue for at least one year
- Not have raised more than $2 million in dilutive funding
- Must meet at least one of the United Nations Sustainable Development Goals (SDGs)
- The applicant must:
- Have a good command of the English language; the grant requires Level B2 and above per the Common European Framework of Reference
- Be at least 18 years of age
- Be able to commit to the fellowship program
3. Jane Walker First Women Grant Program
Jane Walker, a part of the Johnnie Walker whisky company, works with the First Women Campaign and IFundWomen to provide small business grants for women. The grant provides $10,000 and a year-long coaching membership through IFundWomen.Qualifications:
- A person who identifies as a woman must have at least half ownership in the company
- The person applying must be at least 21 years
- The business must:
- Have been in operation for at least two years and make at least $25,000 in revenue annually
- Be willing to push boundaries and fight for diversity
- Be in one of the following categories:
- Entertainment and film
- Hospitality
- Journalism
- Music
- Science, technology, engineering, and math (STEM)
- Sports
4. Tory Burch Foundation Fellows Program
This Fellows Program, sponsored by the Tory Burch Foundation, provides women running early-stage businesses with a one-year fellowship, a $5,000 grant, workshops at the Tory Burch offices, and the opportunity to pitch their businesses.Qualifications:
- The business must:
- Be a for-profit organization in early stage (one to five years of operations preferred)
- Generate revenues of at least $75,000 in the past 12-months
- The applicant must:
- Identify as a woman
- Be 21 years of age or older and legal resident of the U.S.
- Own the biggest or equal stake in a business that is owned or controlled by women
- Be proficient in English
5. Small Business Administration
The Small Business Administration (SBA) offers government contracts to two types of businesses: Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs). This removes additional competition for contracts by limiting eligibility to a small but highly qualified group.WOSB Qualifications:
- Be certified as a WOSB
- Meets SBA size standards
- At least 51% of the business is owned by U.S. citizens who are women
- Women manage daily operations and long-term decision making
EDWOSB Qualifications:
- Meets all WOSB qualifications
- Be run by one or more women who independently have net worths of less than $750,000
- Be run by one or more women with $350,000 or less in adjusted gross income over the past three years
- Be run by one or more women no more than $6 million in personal assets
6. FoundHer Program
The FoundHer Program is specifically geared toward women-owned businesses in Hawaii. If accepted, the program lasts six months with a start date of March 2024. Resources include a $20,000 small business grant, $4,000 care stipend, weekly educational workshops, a network of business mentors, and monthly retreats.Qualifications:
- Must be a for-profit business in its early stages
- Based in Hawaii
- 50% AANHPI women-led
7. SoGal Black Founder Startup Grant
Created by the SoGal Foundation, the Black Founder Startup Grant provides grants ranging from $5,000-$10,000 to Black and multiracial women. Applications are accepted on a rolling basis.Qualifications:
- Identify as a Black woman or Black nonbinary entrepreneur
- Have a registered business
8. Atomic Grant Program
The Atomic Grant program by Passion Collective gives four women entrepreneurs $1,500 cash and business coaching.Qualifications:
- Identify as a woman
- 21 or older
- Passionate about making change happen
- Sign up to Passion Collective
9. Freed Fellowship Grant
The Freed Fellowship Grant gives one business owner $500 a month, and then the chance to earn $2,500 at the end of the year. Winners also receive constructive feedback on their businesses and a two-month membership to the Freed Fellowship community.While there are no specific qualifications to apply, you will need to answer questions about your business regarding its context, content, community, chemistry, and commerce (known as the 5C Framework).
10. AT&T She’s Connected
She’s Connected by AT&T is a $20,000 grant offered to women-owned small business owners. In addition to the grant, the winner will also receive one year free of AT&T service, plus a new device.Qualifications:
- 18 years or older
- Sole or majority owner of a female-owned small business
- 50 or fewer employees
11. Fearless Strivers
The Fearless Strivers Grant is designed for small businesses that are at least 51% black women owned. Four small businesses will receive a $20,000 grant, mentorship, and digital tools to help them grow their businesses.Qualifications:
- 18 years and older
- 51% black woman owned
- Annual revenue of $50,000 or more
- Business formed and operating in the United States
12. Publish Her Business Impact Grant
The Publish Her Business Impact Grant is for women of color business owners who are making a difference in the lives of others. The grant is worth $5,000 and the top 10 entries are voted by the public to determine the winner.Qualifications:
- 21 and up
- Legal resident of the U.S.
- Woman of color business owner
- Business must be 100% women-owned
- Must generate $50,000 or more in annual revenue
13. High Five Grant for Moms
If you’re an entrepreneur and a mom, check out the High Five Grant for Moms by The Mama Ladder. Judges determine the finalists based on your story and your business, and then the public votes on the top three winners. First place receives $10,000, second place receives $5,000, and third place receives $2,500.Qualifications:
- Must be a mom, which includes mothers of adult children, first-time expecting moms, stepmoms, and foster moms
- Own a for-profit or service-based business with at least 51% ownership
- Must have earned revenue for at least one year
14. You Glow Girl Women Entrepreneur Grant
Eat Me Guilt Free offers a grant for women entrepreneurs called You Glow Girl. Launched in 2021, the grant offers a grand prize consisting of $10,000 to put toward your business, a one-year supply of Eat Me Guilt Free products, a physical health and wellness prize (past prizes include a Peloton bike and a one-year subscription to Class Pass), and a mentorship program.
15. Enthuse Foundation Pitch Competition
The Enthuse Foundation Pitch Competition offers 10 winners a $2,500 grant each. To enter, you must pitch your business at an in-person event. The next round opens in March 2024.
16. The Kitty Fund Mother-Led Business Grant
The Kitty Fund Mother-Led Business Grant is open to all entrepreneurs who identify as a mother. Founded in 2020, the grant awards 25 business owners a $1,000 grant.Qualifications:
- Business owner must identify as a mother
- Annual revenue may not exceed $5 million
- Business must be based in the U.S.
- Must have between two and 50 employees
17. FedEx E-commerce Learning Lab
The FedEx E-commerce Learning Lab is designed for women entrepreneurs and entrepreneurs of color looking to improve their e-commerce business. Created by Accion Opportunity Fund, the FedEx E-commerce Learning Lab is a five-month program consisting of courses and workshops, coaching, networking, online sales support, and a $5,000 grant to support your business’ growth plans.Qualifications:
- Own at least 51% of a U.S.-based small business
- Have been in business at least six months
- Produce and sell a packaged product
- Earn less than $500,000 annually
18. Women Founders Network Fast Pitch Competition
The Women Founders Network Fast Pitch Competition allows women business owners to pitch their business in-person for a chance of receiving a grant worth $25,000.Qualifications:
- Founder must be a woman or business must be majority-owned by a woman
- Must be able to attend in-person event
- Must have raised no more than $750,000 in funding
- Must be based in the U.S.
19. Women of Color Grant Program
The Women of Color Grant Program was founded by the Tory Burch Foundation in partnership with the Fearless Fund. The program gives 75 women of color-owned businesses grants worth $10,000 and $20,000. Qualifications:
- 51% women of color-owned
- For-profit business
- Ideally have been in business for one to five years
- Minimum annual revenue of $100,000 preferred
20. Launch Program by Ladies Who Launch
Ladies Who Launch offers a Launch Program which consists of a $10,000 small business grant, a mentorship program, and six months of free education for women and non-binary small business owners. The program is open to women who sell consumer packaged goods, including food and beverages, apparel, household goods, and more.Qualifications:
- Must be a woman or non-binary founder
- Must be a consumer packaged goods company
- Minimum annual revenue of $100,000 (not to exceed $499,000)
- Must be U.S.-based
21. StartHER Grant
The StartHER Grant is offered by Texas Woman’s University and awards 25 $5,000 grants annually to women-owned businesses in Texas.Qualifications:
- At least 51% women-owned
- Five or fewer employees
- Must be owned and operated in Texas
- Must be for-profit
22. InnovateHER Challenge
Offered by the U.S. Small Business Administration, InnovateHER is an annual competition between small business owners with a product or service that positively affects women’s lives. First place receives $40,000, second place receives $20,000, and third place receives $10,000.Qualifications:
- Must be 18 years old
- Product or service must have a measurable impact on the lives of women and families
- Must have potential for commercialization and fill a need in the marketplace
23. Equity Match Grant Program
The Equity Match Grant Program, offered by the Women’s Business Development Council, offers grants up to $10,000 to women-owned businesses located in Connecticut. The grant money must be put to a specific project that will help the business grow, and cannot be used for things like inventory or operating expenses.Qualifications:
- Applicants must match at least 25% of awarded funds
- Business and business owner must be located in Connecticut
- Annual revenue greater than $25,000 but less than $2 million
- Be a for-profit business
24. Visa’s She’s Next Grant Program
The Visa She’s Next Grant Program, in collaboration with IFundWomen, gives women business owners throughout the world access to funding and education. Applications are currently closed, but check back regularly for upcoming programs.
4 Databases of Resources and Grants for Women Business Owners
We not only looked for individual grants but also for resource databases for female small business owners. Below are an additional four resources for finding funding.
- 37 Angels: While 37 Angels is an investment company, they have compiled a list of other funding and development options. This list includes bootcamps, venture capitalist firms, and other organizations assisting female entrepreneurs.
- GrantsforWomen.org: This site provides a database of grants and other types of funding for women, not just those in business but also those attending school or in need of funds for different reasons.
- IFundWomen: IFundWomen offers many crowdfunding resources, grants, coaching, and networking opportunities. They also provide unique opportunities within specific fields and AAPI-, Black-, Latinx and Hispanic-, and queer-owned businesses. In addition, they offer a universal application, so one 20-minute application qualifies you for most of their grants.
- National Women’s Business Council: The NWBC offers a list of resources female business owners may find helpful, including grant opportunities for women entrepreneurs.
What About Federal Grants for Women Business Owners?
According to the Minority Business Development Agency (MBDA), part of the U.S. Department of Commerce, “Despite what the late-night infomercials want you to believe, the federal government does not provide grants for business expansion and growth. There is no ‘free’ money for you to start or grow a business.”
Though Grants.gov does exist, it’s simply a database. Additionally, it only focuses on government-funded programs, not personal business or projects.
However, some states, such as California, offer small business grants and other types of funding. You may also be able to find assistance through your local Small Business Development Center (SBDC).
Additional Private Small Business Grants
In addition to the grants mentioned above, there are other private small business grants that women business owners can look into.
25. America’s Top Small Business Award
The U.S. Chamber of Commerce created America’s Top Small Business Award worth $25,000. The award is open to all small business owners, not just women. Qualifications:
- Must be in business for at least one year
- Must have fewer than 250 employees
- Gross revenue must not exceed $20 million for previous two years
26. National Association for the Self-Employed Growth Grant
The National Association for the Self-Employed (NASE) offers a quarterly Growth Grant to four small businesses up to $4,000. To be eligible to apply, you must be a member of NASE and in good standing for at least three months.
27. Incfile Fresh Start Business Grant
Incfile offers a Fresh Start Business Grant to new and aspiring entrepreneurs. The winner receives $2,500 to use for startup costs for their business, plus free services from Incfile. Dates for 2024 haven’t been announced yet, so check back regularly for updates.
28. Fast Break for Small Businesses
Supported by LegalZoom and the National Basketball Association, Fast Break for Small Businesses seeks to help Black-owned businesses, women business owners, and low- to moderate-income small business owners gain access to funding. Businesses that are selected will receive a $10,000 grant.Qualifications:
- Must be a Black-owned business
- Must be in the U.S.
- Must have been in business at least six months
- Annual revenue cannot exceed $1 million
29. Halstead Grant
The Halstead Grant is specifically for entrepreneurs in the silver jewelry industry. Applicants must submit their design portfolio and answer 15 business-related questions. The winner receives $7,500 to put toward their business and a $1,000 Halstead gift card.
30. Comcast RISE
Comcast RISE was created to help small businesses recover from COVID-19, and now focuses on helping businesses expand and grow. In 2023, 500 businesses in five different cities received grants and other benefits from Comcast RISE. While Comcast focuses on diversity inclusion, the grant is available to all small businesses.
What Can You Do With Small Business Grants for Women?
What you can do with a female-owned business grant is determined by the organization offering the grant.Some grants may stipulate funds be used for specific projects or purposes. For example, a tech-focused grant provider may want the money to be used for research and development to solve a particular technology-related problem. Other grant providers allow you to use them for any business expenses, including:
- Adding a new product line
- Buying equipment like a computer, commercial mixer, or cash register
- Covering inventory
- Creating a product prototype
- Expanding into larger commercial real estate
- Hiring employees
- Investing in marketing
- Launching a business
Tips for Applying for a Female-Owned Business Grant
Grants are notoriously difficult to receive, primarily because there is so much competition for them. Here are five tips to get you started on your grant application journey.
1. Get Organized
When considering applying for grants, the first thing to do is to get all your ducks in a row. Some best practices for this are:
- Read through all qualifications and deadlines upfront.
- Keep a spreadsheet of grants, requirements, and deadlines so you can stay on top of filling out applications on time.
- Allow plenty of time for research, putting together a budget, and filling out paperwork.
Note: Very few grant-giving organizations require an application fee. If the one you’re interested in is asking for such a fee, do some additional digging to ensure the grant is legitimate. For instance, Amber Grants for Women requires a small fee to help keep the grant active; however, you can contact them to ask about waiving your fee.You may use some of this compiled information for future grant applications, so keep it handy in a folder to speed up subsequent applications.
2. Don’t Ignore Small Grants
Small grants can add up quickly. For instance, a $1,000 grant could allow you to get a new computer; $500 could fund a ticket to a networking event where you meet other business owners and investors; $250 is enough for an email marketing software subscription.
3. Write a Grant Proposal
While some grant applications are as simple as filling out an online form, much of the time, you need to create a full grant proposal. This isn’t necessarily an intuitive process and can take some time, so taking a grant writing class or hiring a grant writer may be advisable.
Generally, a grant-giving organization wants to see your business plan and understand what you will do with the funds to start or grow your business.
Often, your proposal should tell your business’ story, including the challenge you’re looking to overcome and why you’re so passionate about it.
Remember to tailor each grant proposal to the funding organization. While some of your information (such as your budget) may be reusable, parts of it may not. Read all the fine print before applying.
4. Share What’s Great About Your Business
This is your chance to show why your company shines and why it’s deserving of this grant.
It can be helpful to look at past grant winners to see what types of businesses have been awarded grants in the past.
5. Review Your Application for Perfection
Have at least one person proofread, whether you hire a grant writer or fill out the application yourself. When all other things are equal, would you choose a job applicant who had a typo over one who didn’t? It’s the same with grant applications!
Grants Can Provide Women Entrepreneurs With Necessary Capital
Having an influx of “free” cash could help you take your business to new heights. Consider what limits you currently have in your business. For example, maybe you would like to invest in a new product. Or perhaps you have been doing everything in your business and know a second set of hands would let you better focus on running your business. Whatever your dream, a small business grant for women can help you realize it.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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The average credit card debt by state
Millions of Americans continue to struggle with credit card debt. The average credit card debt in America is $5,982 as of July 2023, according to a new report from TransUnion®.Out of the 50 states, Alaska has the highest average credit card debt ($7,394), while Wisconsin has the lowest average ($4,843), data show.More than 6 million cardholders are at least 30 days past due on a minimum payment, according to TransUnion’s credit card delinquency data.Your credit card balance is your credit card debt. Making transactions on your credit card is a liability that eventually needs to be repaid. Below we highlight the average credit card debt in all 50 states and explain why making minimum payments each billing cycle may not be right for you.
Damir Khabirov / iStock
Consumer credit card debt in the United States exceeds $1 trillion as of the second quarter (Q2) of 2023, according to the Federal Reserve Bank of New York.The average American credit card debt increased to $5,982 in July 2023 (it was $5,932 in June 2023 and $5,350 in July 2022), according to TransUnion, a nationwide credit bureau.Credit card debt can be costly if you’re paying interest charges. The average interest rate on credit cards is 22.16% as of Q2 2023, according to preliminary Federal Reserve data on credit card accounts assessed interest. (Learn more atHow Many Credit Cards Should I Have?).
Kiwis/istockphoto
TransUnion publishes U.S. credit card debt data every month in all 50 states and the District of Columbia. We’re tracking the data as it becomes available and then ranking the average credit card debt by state in descending order using TransUnion’s recent industry snapshot (July 2023):
fizkes/istockphoto
The nation’s capital is not a state, but the District of Columbia has one of the highest average credit card debt balances in the United States. The average credit card debt in Washington, D.C., stands at $7,022 per consumer as of July.
Sean Pavone/istockphoto
Alaska is the largest state in the country in terms of its geographical boundaries (586,412 square miles). It also leads all 50 states with the highest average credit card debt in the nation. Cardholders in Alaska have an average credit card balance of $7,394 as of July.
chaolik/istockphoto
Hawaii sports tropical climate and active volcanoes. This state of islands in the Pacific is also known for its relatively high average credit card debt. Consumers in the Aloha State have an average credit card balance of $6,720 as of July.
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Maryland sits south of the Mason-Dixon line. This Old Line State has a relatively high credit card debt in the USA. The average credit card debt in Maryland stands at $6,650 per consumer as of July.
James_Lane
Nevada may have some issues with gambling debt. This predominantly desert and semiarid state also ranks high in credit card debt. The average credit card debt in Nevada is $6,529 per consumer as of July.
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New Jersey is the most densely populated state in the United States. The Garden State also has a high average credit card debt. Cardholders in New Jersey have an average credit card balance of $6,526 as of July.
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Virginia enjoys close proximity to the nation’s capital in a region locally nicknamed DMV (District of Columbia, Maryland, and Virginia). Similar to Maryland and Washington, D.C., consumers in the Old Dominion state carry a relatively high average credit card debt in America. Virginia’s average credit card debt stands at $6,523 per consumer as of July.
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Colorado hosts a large stretch of the Rocky Mountains. The Centennial State also hosts a large amount of credit card debt per consumer. The average credit card debt in Colorado is $6,450 per cardholder as of July.
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Texas is one of the largest states in the nation in terms of its geographical boundaries and population. The Lone Star State also has a relatively high average credit card debt in the U.S. The average credit card debt in Texas is $6,397 per consumer as of July.
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Nicknamed the Constitution State, Connecticut has the highest average credit card debt in New England. What is the average credit card debt in Connecticut? It’s $6,386 per consumer as of July.
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California is the most populous state in the nation with more than 38.9 million people as of Jan. 1, 2023. The Golden State also has one of the highest amounts of credit card debt per consumer. The average credit card debt in California is $6,368 per cardholder as of July.
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Georgia produces tons of agricultural goods, but the Peach State also has a relatively high level of credit card debt. The average credit card debt in Georgia is $6,347 per consumer as of July.
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Florida is one of the largest states in the nation in terms of population and economic activity. The Sunshine State has more than 22 million residents and a gross domestic product (GDP) of nearly $1.4 trillion as of 2022. The average credit card debt in Florida is $6,336 per consumer as of July.
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Washington state borders the Canadian province of British Columbia and carries a relatively high amount of credit card debt per consumer. The average credit card debt in Washington is $6,331 per cardholder as of July.
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New York remains one of the largest states in the nation despite its recent decline in population. The average credit card debt in New York is $6,224 per consumer as of July.
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Arizona welcomes domestic and international tourism with its Grand Canyon natural landmark and desert climate. The average credit card debt in Arizona is $6,083 per consumer as of July.
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Delaware is a relatively small state in terms of its geographical boundaries and population. The First State, however, is one of the bigger states in terms of average credit card debt. The average credit card debt in Delaware is $6,044 per consumer as of July.
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Wyoming has the smallest population in the nation (fewer than 600,000 people). But this Mountain West state has a relatively high amount of credit card debt per consumer. The average credit card debt in Wyoming is $5,931 per cardholder as of July.
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Massachusetts rests in the heart of New England. The Bay State also has a relatively high amount of credit card debt per consumer. The average credit card debt in Massachusetts is $5,927 per cardholder as of July.
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Illinois enjoys its reputation as the Land of Lincoln. This Midwestern state also has a relatively high amount of credit card debt per consumer. The average credit card debt in Illinois is $5,916 per cardholder as of July.
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New Hampshire represents one of the smaller states but has a high amount of credit card debt per consumer. The average credit card balance in New Hampshire is $5,888 per cardholder as of July.
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Utah has the Great Salt Lake and a smaller average credit card debt than most of the states it borders. The average credit card debt in Utah is $5,834 per consumer as of July.
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Oregon carries a lower level of credit card debt per consumer than most of the states it borders. The average credit card debt in Oregon is $5,820 per cardholder as of July.
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South Carolina is known for its coastline and beaches. The Palmetto State shares a border with Georgia but has a much smaller scale of credit card debt on average. The average credit card debt in South Carolina is $5,816 per consumer as of July.
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North Carolina is known for its colleges, universities, and military bases, among other things. (The Tar Heel State has several state-based student loan forgiveness programs.) The average credit card debt in North Carolina is $5,757 per consumer as of July.
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Rhode Island is the smallest state in the country in terms of its geographical area (1,214 square miles). The average credit card debt in Rhode Island is $5,747 per consumer as of July.
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Oklahoma is located in the middle of the 48 contiguous states. The Sooner State is also at or near the middle of the pack regarding average credit card debt in America. The average credit card debt in Oklahoma is $5,737 per consumer as of July.
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Louisiana sits along the Gulf Coast in the South. The Pelican State is also known as the Creole State and the Sugar State. The average credit card debt in Louisiana is $5,713 per consumer as of July.
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Nicknamed the Keystone State, Pennsylvania has a lower amount of credit card debt per consumer compared with its Mid-Atlantic neighbors of New York and New Jersey. The average credit card debt in Pennsylvania is $5,612 per cardholder as of July.
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Idaho is nicknamed the Gem State and is known for its potatoes. Average credit card debt per consumer in Idaho is one of the lowest in the Mountain West region. The average credit card balance in Idaho is $5,548 per cardholder as of July.
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Well-known for its country music scene, Tennessee has a lower credit card debt per consumer than most of the 50 states. The average credit card balance in Tennessee is $5,516 per cardholder as of July.
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Minnesota became the North Star State because of its geographical location in the country’s heartland. The average credit card debt in Minnesota is $5,481 per consumer as of July.
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North Dakota has multiple nicknames, including the Flickertail State, Sioux State, and the Peace Garden State. The average credit card debt in North Dakota is $5,471 per consumer as of July.
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New Mexico has a lower credit card debt per consumer than each of the neighboring states surrounding it. The average credit card debt in New Mexico is $5,466 per cardholder as of July.
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Kansas markets itself as the Sunflower State. The average credit card balance in Kansas is $5,449 per consumer as of July.
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Montana is known as America’s Treasure State and Big Sky Country. Montana also has the lowest average credit card debt in the Mountain West region. The average credit card balance in Montana hovers at $5,447 per cardholder as of July.
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Missouri is not just any state — it’s the Show Me State. The average credit card debt in Missouri is $5,397 per consumer as of July.
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Alabama enjoys a coastline along the Gulf Coast. Known as the Cotton State, Alabama is also known for peanuts. The average credit card debt in Alabama is $5,396 per consumer as of July.
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Maine has relatively low credit card debt per consumer compared with other New England states. The Pine Tree State also has among the lowest credit card debt per consumer along the East Coast. The average credit card balance in Maine is $5,369 per cardholder as of July.
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Michigan hosts several manufacturers of popular car makes and models. It’s also known as the Wolverine State and the Great Lake State. The average credit card debt in Michigan is $5,353 per consumer as of July.
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South Dakota hosts the famous Mount Rushmore National Memorial. The average credit card debt in South Dakota is $5,277 per consumer as of July.
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Ohio serves 11.8 million residents as of 2022, making Ohio one of the most populous states in the nation. The Buckeye State also has among the lowest credit card debt per consumer in the United States. The average credit card debt in Ohio is $5,267 per cardholder as of July.
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Vermont is known as the Green Mountain State. The average credit card debt in Vermont is $5,259 per consumer as of July.
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Arkansas — dubbed the Natural State because of its wildlife, bodies of water, and preserved open space — is a Southern state with a relatively low level of credit card debt per consumer. The average credit card debt in Arkansas is $5,210 per cardholder as of July.
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Mississippi is one of the poorest states in the nation, but the cost of living in the Magnolia State is also among the lowest nationwide. The average credit card debt in Mississippi is $5,208 per consumer as of July.
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Nebraska produces 81.6% of the nation’s great northern beans as of 2022, according to federal data. The average credit card debt balance in Nebraska is $5,180 per consumer as of July.
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Indiana is America’s Hoosier State. The average credit card debt in Indiana is $5,125 per consumer as of July — one of the lowest in the nation.
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Kentucky has a relatively low level of credit card debt per consumer. The average credit card debt in Kentucky is $5,088 per cardholder as of July.
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West Virginia remains one of the few states that may pay you to move there if you work from home. The average credit card debt in West Virginia is $5,062 per consumer as of July.
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Iowa ranks first in the nation in the production of corn for grain. The average credit card debt in Iowa is $4,958 per consumer as of July.
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Wisconsin remains the largest cheese producer in the nation, and consumers in America’s Dairyland have the lowest average credit card balances nationwide. The average credit card debt in Wisconsin is $4,843 per cardholder as of July.
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You can find out your credit card balance by reading your credit card statement. Your credit card balance matters because it’s your unpaid credit card debt that you are expected to repay as fast or as slow as you wish.
The slowest way to pay down credit card debt is to make minimum payments each billing cycle. The fastest way to pay down credit card debt is to pay the full statement balance each billing cycle.
Cardholders with a credit card grace period may avoid interest charges on new purchases by paying the statement balance in full each billing cycle.The annual percentage rate (APR) on a credit card can be quite high compared with other consumer lending products. If you make minimum payments each billing cycle, it could take years to pay off the debt and the interest charges could be costly in particular.
How much credit card debt does the average American have? The average American credit card balance is $5,844 per consumer as of May 2023, according to TransUnion data.
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In general, leaving a small balance on your credit card is not the best idea if your goal is to build credit without incurring interest charges.Carrying a small balance may not be right for you if you can afford to pay off your statement balance each billing cycle. Unless you have a 0% introductory APR, you may face interest charges if you pay less than the statement balance.
How To Avoid Credit Card Interest
If your credit card has a grace period, you may avoid credit card interest charges by paying your statement balance in full each billing cycle. You may also want to avoid credit card cash advance transactions if you’re trying to avoid credit card interest charges. (Learn more at Should You Cancel Unused Credit Cards?).
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Consumers in all risk tiers use credit cards to buy goods and services. Credit card debt exists across all risk scores, but cardholders with bad credit are more likely to experience serious delinquency.According to TransUnion’s credit card debt data by risk tier (July 2023):
- 18.55% of subprime cardholders fell 90+ days past due
- 1.21% of near prime cardholders fell 90+ days past due
- 0.19% of prime cardholders fell 90+ days past due
- 0.01% of prime plus cardholders fell 90+ days past due
- 0% of super prime cardholders fell 90+ days past due
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While it’s interesting to learn the average credit card debt in the U.S., it doesn’t help you much when you’re struggling to pay down your own credit card debt.
Most credit cards are unsecured without collateral. This means credit card account holders typically are not required to make a security deposit. Failing to pay and defaulting on your credit card bills can severely damage your credit.
When you make transactions on a credit card, the transaction activity represents an unpaid debt that you’ll eventually have to repay as fast or as slow as you wish. If you’re facing credit card debt challenges, below we highlight some ways you may manage your debt.
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Here are three tips that may help you reduce credit card debt:
1. Using Balance Transfer Credit Cards
Some credit card issuers offer new applicants 0% introductory APR financing on balance transfers. This enables you to transfer existing credit card debt to a new card and gives you a break from incurring interest charges. And when you transfer balances from multiple cards, you’re consolidating your debt as well, which can make it easier to stay on top of payments since you’ll have just one instead of multiple.
Promotional APR offers last a minimum of six months and can extend up to 21 months. Just note that you may incur a balance transfer fee, which is typically 3% to 5% of the amount transferred. With the way credit cards work usually, the balance transfer fee is added to the balance of the new account.
The key to utilizing a balance transfer credit card is to pay a portion of your remaining balance each month before you resume swiping at places accepting credit card payments. This ensures that you have the entire balance paid off by the time the promotional rate expires and the standard rate resumes.
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Another option to pay off credit card debt is to use a personal loan to consolidate debt. Personal loans are typically installment loans with fixed monthly payments and a fixed repayment schedule. Approval typically is based on your personal credit history and credit score.
If you have good or excellent credit (661+ VantageScore® 4.0), you might be able to qualify for a loan with a lower interest rate than your current credit cards have. When you receive funding from a personal loan, you can use it to pay off your credit card debt, which may have higher interest rates — especially if your APR is above the average credit card interest rate.
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You could also look for a credit counseling service that can offer advice on how to manage your credit card debt and pay it off. There are nonprofit credit counselors who can help you to choose from one of many possible solutions, such as credit card debt forgiveness.
Credit counseling can also offer general financial education, such as explanations of important credit card definitions and tips on budgeting. Counseling can take place in person, online, or over the phone. You may be able to find nonprofit credit counseling services through a university, military base, credit union, or housing authority.
Beware that some vendors may not be legitimate credit counselors. The U.S. Department of Justice maintains a list of approved credit counseling agencies by state. Most of the reputable credit counseling agencies are nonprofit organizations that offer services at local offices, online, or on the phone, according to the Federal Trade Commission.
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Whether you have a large or small amount of credit card debt, paying that balance off as soon as possible may reduce or eliminate your interest costs. When choosing a credit card, consider the card’s standard interest rate, as well as any promotional financing offered on new purchases, balance transfers, or both.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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