Credit Scores Continue to Improve in The United States
Credit Scores Continue to Improve in The United States
The recession that hit the United States on 2008 has placed borrowers and lenders alike in a bad place. Credit scores suffered, and worse, it was difficult to get a loan when your credit falls in the range of 700 to 749.
In a recent study by FICO Labs, it was revealed that most customers have FICO scores that range between 800 and 850. It represents about 18.3 percent of the total population.
The great news does not stop there, it was also reported that the number of customers that are recovering from bad credit has increased too.
The CEO of the Quizzle based on Detroit, Todd Albery concludes that the economy is recovering from the recession based on the latest findings of the study. Credit card owners are now wiser spenders, they no longer just swipe away their purchases, and they also work hard to pay their bills on time.
Many companies have also recovered and the number of unemployed people has decreased. Therefore, more people are capable of paying their bills and recovering from bankruptcy and bad credit.
Now, more than half of the whole American population has fair credit ratings with their FICO scores ranging from 700 to 850. The ratio of customers that have scores between 700 and 749 now represents the lowest point of the survey, only representing 15.5 percent of the population since April of this year.
Moreover, only 20 percent of the respondents of the survey expect to have delinquencies in their automobile loans compared to the 33 percent in the previous quarter.
The survey also found out that 28 percent of its respondents compared to the 39 percent of the last survey expected law-breaking on small-business loans.
The breaches on credit card terms and regulations have also decreased in this quarter and more citizens are making sure that they qualify for loans.This is definitely great news for the country.
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Filed under: Credit • credit cards • Credit Score • line of credit • Loans
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