The COVID-19 pandemic has wreaked havoc all over the world. Total number of confirmed cases in the US has surpassed 500,000. At least 22,106 people have lost their lives so far, most of them in New York. Life has come to a halt. More than 10 million people have lost their jobs in the last couple of months. And now people are desperately looking for loans and unemployment benefits to make ends meet. Here we take a look at the top 10 American states that need loans the most due to the COVID-19 pandemic.
A loan can help people in distress cover their near-term expenses while they look for a job. People who have lost their jobs can apply for unemployment benefits and other federal programs, including the CARES Act. The CARES Act has allocated a staggering $560 billion to individuals and $377 billion to small businesses.
Personal finance website WalletHub has published a report ranking states where people are searching for loans the most. WalletHub analyzed Google search trends data for three loan-related terms and the internal credit report data to rank all 50 states and the District of Columbia.
The report shows that people in some states need loans more badly than in others. States at the top of the ranking could experience more strain on their public assistance programs. WalletHub looked into the spike in search trends for three main keywords – Loan, Payday Loans, and Home Equity Loan.
Notably, rural states such as North Dakota and Wyoming ranked at the bottom of the list. People in these states are not too worried about getting new loans. North Dakota has reported only 308 confirmed COVID-19 cases so far. Wyoming has only 270 confirmed cases as of April 12, 2020.
These are the ten states that need loans the most amid the coronavirus pandemic, according to WalletHub.
California is one of the wealthiest and most expensive states in the United States. So far, the COVID-19 virus has infected 23,300 people and killed 681 in the state. According to WalletHub, California ranked 8th for Loan Search Interest and Payday Loans Search, 7th for Home Equity Loan Search, and 34th for Change in Average Inquiry Count.
Georgia ranked 9th among states that need loans the most. It ranked 12th for Payday Loans Search, 13th for Home Equity Loan Search, 14th for Change in Average Inquiry Count, and 26th for Loan Search Interest.
With more than 25,000 confirmed cases and 756 deaths, Massachusetts is one of the worst-hit states in the country. The state ranked 2nd on Payday Loans Search and 16th on Loan Search Interest.
Pennsylvania is popular among retirees. Data from WalletHub shows that people in the state are desperately searching for loans. Pennsylvania has more than 22,000 confirmed COVID-19 cases. At least 507 people in the state have lost their lives to the novel coronavirus. Pennsylvania ranked 3rd for Change in Average Inquiry Count and 13th on the Home Equity Loan Search.
Tourism is one of the biggest sources of income for people in Florida. Whether it’s hotels, restaurants or cultural centers, business has come to a halt in the state. It has seen a significant spike in the number of unemployment claims over the last few weeks. Florida ranked 2nd for Home Equity Loan Search and 21st for Payday Loans Search Interest.
5- New York
With nearly 200,000 confirmed cases and 10,000 deaths, New York has become the epicenter of the COVID-19 pandemic. Millions of people have lost their jobs, temporarily shut their businesses, and are forced to stay indoor. New York ranked 5th for Home Equity Loan Search Interest and 7th for Loan Search Interest.
Alabama ranked 2nd in the country for Change in Average Inquiry Count and 11th on Payday Loans Search Interest. As of April 12, there were 3,611 confirmed cases and 93 fatalities in Alabama.
Virginia had an unemployment rate of just 2.8% towards the end of 2019. Since the beginning of this year, unemployment claims have skyrocketed 3479.17%. With a massive spike in unemployment, Virginia ranks 3rd among states that need loans the most right now. It ranked 4th on the Home Equity Loan Search and 7th for Change in Average Inquiry Count.
2- District of Columbia
Surprisingly, District of Columbia ranked 1st on WalletHub’s Loan Search Interest Index but 45th on Payday Loans Search Interest. Between January and March 2020, the number of unemployment claims jumped 2991.06%. There have been 1,875 confirmed COVID-19 cases in the District of Columbia so far.
1- South Carolina
South Carolina occupies the top spot on this list. The Palmetto State ranked 1st for Home Equity Loan Search Interest, 4th for Change in Average Inquiry Count, 8th for Payday Loans Search Interest, and 13th for Loan Search Interest. South Carolina has 3,319 confirmed coronavirus cases. The state has also seen a surge in the number of unemployment claims.