Credit scores sink to new lows

About 25.5% of Americans had credit scores below 600 in April, according to FICO Inc. Historically, only about 15% of consumers have had scores below that level.

By Shan Li, Los Angeles Times

July 12, 2010 | 3:44 p.m.

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.

Consumers with low credit scores will have increased difficulty obtaining credit cards and other loans, said Christian deRitis, director of credit analytics at Moody's Analytics.

A high national unemployment rate — 9.5% in June — has helped drive down scores, DeRitis said. "Delinquencies are on the rise. People out of work are not making payments on debts, and that negatively impacts their scores," he said.

http://www.latimes.com/business/la-fi-credit-scores-20100712,0,1240553.story

"Delinquencies are on the rise. People out of work are not making payments on debts...."

"Until the labor market turns around, people will remain unable to pay bills," DeRitis said. "Lowered consumption will only add extra friction to the economy."

And this surprises wall street/corporation greedy assholes!!!

Hey DeRitis, tell wall street and corporations this info, as they don't have a clue!

The reason millions more have poor credit rating are as follows: 1. Before the Credit Card Laws went into effect in February, the banks RAISED their APR's to the highest the law allowed. 2. Most banks REDUCED a lot of peoples credit card limits before the law went into effect. 3. The Banks RAISED the monthly minimums. The Banks were not stupid you know. They knew exactly what they were doing. Now is it surprises a lot of people have fallen behind and as a result their FICO scores are low.

By the banks with shackling people to debt with
the high interest rates and 2nd it's the new blame game.
It's not the banks, it's the people.