Texans Have Most Accounts In Collections In U.S.

(NEXSTAR) — Few things on your credit report can affect your credit score like having an account in collections. As Experian explains, this record of a defaulted debt will typically remain on your credit report for seven years from the first missed payment, and per some recent data, it appears many Texans are in danger of major credit score dings.

Recently, financial resource and news outlet WalletHub released its analysis of 100 major U.S. cities to find out which ones were struggling the most in 2025. To do this, WalletHub measured cities across metrics like average number of accounts in collections, average balances, and how much each figure changed between Q1 and Q2 of this year.

And unfortunately, several Texas cities came out on the very top for accounts in collection nationwide.

Garland, located northeast of Dallas, was found to be the U.S. city where residents have the most accounts in collection. Garland, which has a population of 246,018 as of 2020’s Census, saw an average increase of collection accounts of 3.4% between Q1 and Q2 2025, per the data. WalletHub financial writer Adam McCann explains this is the 13th-highest increase in the U.S. for the same time period.

Garland residents with accounts in collection have 3.6 defaulted accounts with an average balance of $1,248 per account, according to the data.

Altogether, McCann says Garland saw increases across several metrics that, while not the highest in the nation, paint a concerning picture when put together. McCann writes: “This upward trend could indicate that financial pressures are building [for Garland residents], even if individual balances remain relatively low for now.”

And other Texas cities didn’t fare too well, either.

In fact, Texas cities hold a whopping eight spots in the top 10 cities with most collection accounts. They are:

The Texas city with the fewest accounts in collections overall is Irving at no. 22 nationally. While Irving ranked 11th for number of accounts in collection, its score was helped by ranking 97th in change in number of collection accounts — meaning residents there saw the least amount of new defaulted debts being added to their credit reports.

Curious which U.S. city had the least amount of collection accounts?

That would be Winston-Salem, North Carolina, followed by Honolulu, Hawaii.

To read the full analysis, visit WalletHub. For information about debt collection, in addition to tips and resources for navigating the stressful financial situation, visit the U.S. Consumer Financial Protection Bureau.