FICO Reports Credit Scores At an All-Time Low
A new report issued by FICO, still the number one company that provides credit scores lenders view to assess an individual’s credit risk, shows a number of interesting facts about the current U.S. economy.
1. More Americans have poor credit than ever before.
2. There are also more Americans with excellent credit than there have been in the past.
3. The number of people with a mid-range score (650 – 699) has dropped.
43.4 Million Americans Probably Cannot Get a Loan
According to the FICO report, 43.4 million Americans have a FICO score below 599, which is considered poor. This number represents 25.5 % of all Americans. Their poor credit score will make it harder (or impossible) for these people to:
- Get a mortgage
- Buy a car with a loan
- Get an unsecured credit card
- Rent an apartment
- Sign up for a cell phone plan
Additionally, these individuals may pay higher interest rates if they can get credit, and may pay more for car, homeowners’ or renter’s insurance.
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