Millions of Americans have seen their fall amongst the lowest levels possible. FICO is reporting that almost 44 million people, 25.5 % of consumers, currently have a credit score less than 600. A CS this low makes a borrower a very high risk for lenders. These low credit scores will make it almost impossible for these consumers to obtain a mortgage, auto loans, or credit cards. Over the past two years the amount of people with c.s. below 600 has gone up by 2.4 million people.
A very important group to look at is those with moderate cs, 650 to 699. The amount of people in this bracket is currently 11.9 percent of consumers, down from 12 percent in 2008. While the drop off is not that significant it is worth noting that the average number of consumers with these cs is usually 15 percent.
The consumers with moderate FICO could be in the most trouble when it comes to lending. Consumers with scores below 600 most likely would not try to borrower but those with moderate scores may try to obtain loans. In previous years these were seen as good credit scores for obtaining loans but standards have toughened and these scores aren’t as good as they once were. These tightened standards may make it much tougher for these people to obtain loans, especially with the best mortgage rates.
There are some positives when looking at the trends in our consumer’s credit_score. The amount of consumers with an 800 credit:score, a perfect score, has gone up recently. Currently 17.9 percent of consumers have a perfect score. This is significantly larger than the past average with is about 13 percent. These consumers with good credit scores should have no trouble obtaining any type of loan.