Is Your Credit Score Sinking Lower?
I hate to be the bad news town crier, but I have just read some discouraging news as far as US credit scores goes. Remember, these credit scores are needed to get credit cars, auto loans, and of course new home financing. They can also affect the price you pay for lots of other things. Even your car insurance rates can be affected! Beyond just affecting people with poor credit, it affects other businesses too. Less homes or autos will get sold if people cannot qualify for credit!
In fact, FICO says that over a quarter of Americans have a credit score that is below 600. FICO says that before the great recession, only about 15 percent of Americans had credit scores that low.
There are also slightly more people with very good credit scores. That would be in the 800 plus range. This may reflect a growing number of people who are trying to cut debt and reduce spending in response to the economic problems.
The number of people with moderate credit scores, between very good and pretty poor, has also been reduced. Some people, perhaps because of a job loss or other troubles, have dropped down. Others have been lucky, and become more aware of their credit scores, and they have moved up.
The full effect of the change in credit ratings may not be felt yet. It usually takes a few months of economic problems, or reducing debt, to really impact credit scores.
Explain Credit Scores Raising Your Credit Score From Fair to Great! Lower Credit Limits Can Mean Lower Credit Scores
It’s like the recession has become old news, but not because it is over yet. Millions are still struggling with mortgages, out of work, or just sunk down in bad credit.