Credit scores tank‏


Inquiring minds are aghast at an article appearing in the LATimes on the collapse of Americans FIFO scores.

Battered by unemployment and tighter lending standards, the credit scores of millions of Americans are sinking to new lows.

About 25.5% of consumers — or 43.4 million people — had credit scores below 600 in April, according to FICO Inc. Historically, only about 15% of consumers — or 25.5 million — have had scores below that level, FICO said.

Its not just those at the lower end. The middle tier has also been significantly impacted:

Those in the middle of the spectrum have also declined. Moderate credit scores, between 650 and 699, fell to 11.9% from a historical average of 15%.

One the other hand:

On a bright note, the percentage of consumers with high scores of 800 or above has risen. Those with pristine records are at 17.9%, well above the historical average of 13%, although slightly down from the 18.7% in April 2008.

This is most likely due to the fact that these people are shedding debt and still their have jobs. The latter being the most important.

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