CreditKarma.com has released some figures today that detail the growing number of individuals in America with below average credit scores. According to CreditKarma, creditors have pegged a score of 660 as the threshold for approval for most forms of lending. If you are a part of this segment of the population, you are poised to receive the lowest interest rates, and the benefits of unsecured loans. Unfortunately, nearly 40% of Americans have a credit score below 660.
With recent legislation, it is easier for consumers to see their credit scores. The problem that most face though, is that they aren’t able to see their credit scores until after they have been denied financing. Hopefully there is more reform on the horizon, but for now it looks like most of us will have to buckle down, and start paying down some debt.
Usually, in times of economic stress, banks and lending institutions will generally become more strict in their lending practices, so we may not see a let up in this regard for some time.
Citations for this post:
- Justine Rivero, The New Credit Score Rules, Forbes.com, 8/19/2011
