Montana and North Dakota Among States Least Affected by Credit Limit Reductions

According to a new study by WalletHub, Montanans and North Dakotans have come out better than most in the nation’s tightening credit environment.

The report, which compared data between the second quarter of 2024 and the second quarter of 2025, found both states ranked near the bottom nationally for credit limit decreases—meaning residents saw fewer reductions in available credit than most Americans.

North Dakota ranked 47th overall, placing it among the states with the smallest average drop in credit limits. Montana followed closely at 43rd, well below the national median. In contrast, Wyoming—their western neighbor—saw the sharpest declines in the nation, ranking first for credit limit decreases, while South Dakota placed 40th.

According to the report, Wyoming residents experienced a 16% average decrease in credit limits over the past year and nearly a 22% drop for new cards opened in 2025. That stands in stark contrast to the Dakotas and Montana, where available credit remained relatively stable.

Nationally, the report found that credit limit reductions were most severe in Wyoming, Alaska, and Vermont, while Oklahoma, New Hampshire, and Indiana experienced the fewest decreases. The trend, analysts say, reflects lenders’ efforts to manage risk amid rising credit card delinquencies and sustained inflation.

Montana and North Dakota’s relative stability may reflect stronger credit performance and consistent income levels compared to nearby rural states. With both economies bolstered by agriculture, energy, and steady employment, residents have avoided the deep credit pullbacks seen elsewhere in the region.

Still, experts caution that even modest reductions can affect consumers’ financial flexibility. Lower credit limits raise utilization ratios—a key factor in determining credit scores—and can limit spending power at a time when prices remain high.

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Overall, the WalletHub findings suggest that while parts of the Mountain West—particularly Wyoming—are seeing rapid contractions in consumer credit, Montana and North Dakota remain relative bright spots in an otherwise tightening financial landscape.

Here is how each state fared:

Notes: *No.1 = Most Decrease.
With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the worst conditions for that metric category.