Low Credit Scores Still A Huge Problem For Many Consumers

While the economy seems to be improving in many cases, for some, a low credit score is still a problem, and because those who had financial problems during the recession are the most likely to have suffered low credit scores, that could be a serious problem. Lenders are tightening their standards seriously, and that may mean real problems as people try to obtain loans.

A recent survey by the American Consumer Credit Counseling group found 40% of respondents had credit scores below 620. That number is typically the cut off for even subprime loans today. More than 20% of those said their credit scores were under 580.

Many analysts point to high unemployment as a factor in the credit score crisis. Those who have been out of work may have created debt they simply can’t pay for now. Credit education, though, could help alleviate some of the problems seen today.

Source: http://www.telegram.com/article/20120429/NEWS/104299968/1002/business

One comment

  1. Hello Sam Jordan, In my opinion the biggest problem in debt is caused for unemployment and lack of financial education, a very common example is the bad use of a credit card for financial immaturity, this problems affect your credit scores and for this reason if you need a loan or something like that, maybe going to have problems

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