• Falling Consumer Credit Scores

    Falling Consumer Credit Scores

    August 28, 2009

    It should be of no surprise the recent recession has hurt consumer big time. As individuals have lost their jobs paying bills becomes tougher and tougher. And sometimes these payments are paid late or one bill is paid over another. Moreover, as you add in the foreclosure rate, it should be of no surprise that the average American credit score is dropping.

    Here is a quote from USA today that indicates falling credit scores.

    From the third quarter of 2008 to the first quarter of 2009 — the latest data available — the average TransUnion credit score dropped 6 points to 651, the credit bureau says. Scores fell more dramatically in states hardest hit by the housing bust: California saw a 10-point drop, for example, and Arizona, 11.

    This was actually published in May and now the effect is even larger.

    Also, on the other side are the lenders who are being burned by default.  Many of these loads were definitely preditory, but many were to individuals who had good credit.  So the overall effect could be lenders will have higher standards when it comes to giving loans.  So you now have to have an excellent credit score score to get a decent loan.

    Actually it is very hard to say what the final outcome of the credit market will be.  Furthermore, the overall effect on the average consumer’s credit score.  With the overall unemployment having the potential of being double digits makes the idea of a positive jump in the average very slim.

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User Comments

  1. Luckily my score has risen. Its been a tough year hopefully change will come soon.

    August 15, 2010 Comment by scented crystals@
  2. My credit score have also risen, so it feels great. Even though it feels like other people are worse, but I don’t know.

    September 8, 2010 Comment by sälja guld@
  3. I’d say credit score is very very important thing to improve

    September 22, 2010 Comment by david@
  4. The world has been still reviving but the void space that has been left with the recent economic crisis will take a longer time to fill. There are many people who are not in a condition to avail for anything taking into account their bad credit. Availing for a debt or a credit settlement would be of a very good use and they will be happy to sort out the way.

    Tax debt settlement

    October 20, 2010 Comment by isbelasmth@

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