Spike in Poor Consumer Credit Scores is Rising as the Economy is Dwindling
With mortgage defaults on the rise, unemployment rates skyrocketing and credit card debt piling up, it is inevitable that consumer’s credit scores are sinking faster than the Titanic ship did in the Atlantic Ocean in 1912. Statistics provided by the Fair Isaac Company Inc. (FICO), one of the most trusted and used credit-scoring agencies in America, show that an overwhelming amount of Americans have a credit score of 599 or below, categorized as hazardous to most lenders.
In past history, 25.5 million of the 170 million American consumers with active credit accounts, or 15.5 percent, had credit scores below 599, according to the data posted on Myfico.com. One major real estate collapse, irresponsible consumer spending and a catastrophic economic recession later, that number has spiked to nearly 43.4 million people.