Millions of American’s Credit Scores Hit Troubling New Lows

Over 25% of American consumers (approximately 43.4 million) have credit scores of 599 and below. It is no secret that consumers have relied heavily on debt throughout the past few years, but because of the slow economic recovery and the new regulations being put on credit card issuers after the CARD Act went into effect, these 43.4 million people will now have more trouble than ever getting credit cards, auto loans or mortgages under the tighter lending standards.

The figures proving these new statistics came from FICO, Inc. whose recent analysis is based on consumer credit reports from April up to recently. What is deeply troubling about FICO’s findings is that historically, 25.5 million people fell below the 599 credit score and more are likely to join those in their lowest credit score categories.

On a mildly positive note, the number of people who have a top credit score of 800 or above has increased recently. This can only be attributed to people who have cut spending and paid down debt after consolidating and adjusting to the waves of the recession. There are currently 17.9% of Americans with a credit score of 800 or above.

Now is the best time to begin paying off debt, saving money and doing whatever you can to raise your credit score. Because of the new lending standards being applied by banks, you may not be getting much wiggle room in the world of credit for quite a while.

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About the Author: Holly Ord

In addition to being the Founder and Editor of Woman Tribune, Holly Ord is a freelance writer, web designer and developer, feminist activist and blogger, and hopeless video game addict. She lives in Northeastern Pennsylvania and has been blogging on liberal politics and gender equality on her personal website, Menstrual Poetry since 2007.

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