Everyone has suspected that the average credit scores have been falling. The economy has given a serious black eye to credit and credit scores and now we know how much!
FICO.com has just reported that 25.5% of the US population that use credit now have a credit score of 599 or less. That’s a whopping 43.4 million people in this category. In the past about 15% or 25.5 million have been in this category which means that over the last 2 years there are been an increase of 17.9 million people fall under a 599 credit score which is a whopping 70% increase!
Overall 35% of the population are at a 649 credit score or less. What does this mean? Basically, look at the person to the right and look to the left and the dirty truth is that one of the three of you cannot buy a house nor car and are considered unworthy of credit by many lenders and are in need of help with credit repair.
Now certainly some folks need to tighten their boot straps and become more diligent in their handling of debt but the majority have been simple pawns in this economy over the last couple of years. The reality is there are several forces causing this credit eligibility problem. Unemployment at 10% as well as the numbers of unemployed no longer even counted. The downward spiral of real estate values which is forcing people to accept short sales or forced into foreclosure is commonplace. Credit lenders cutting credit lines on home equity lines to credit cards no matter your credit score has eliminated well over a trillion dollars of credit availability.
Right now this economy needs jump started and one of the ways this happens is that people are buying goods and services. However this increase of folks with falling credit scores puts a damper on this at best. The ability to clean up your credit and fight to restore your credit score back to a level that allows you buy a new home or car is your right. If you’d like to know how we can help you with credit repair get a credit consultation at no cost to see if our assistance makes sense for you.
Be Bold!
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