FICO Report Indicates Americans’ Credit Scores Drops Below 600

The Fair Isaac Corporation or most known as FICO credit scores, which are sold directly to consumers using Equifax and Transunion, are dropping each and every month. The figures provided by FICO Inc. indicates that 25.5% of consumers, or nearly 43.4 million people, now have a credit score of 599 or below, marking them as poor risks for lenders. It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use. So with a credit score of 650 or below being considered “subprime” or “bad credit” this is very bad news for the strength of the overall economy.

“I don’t get paid for loan applications, I get paid for closings,” said Ritch Workman, a Melbourne, Florida, mortgage broker. “I have plenty of business, but I’m struggling to stay open.”

In the past, more than 15%or approximately 20 million Americans have FICO credit score below 600. Currently, the United States seeing 43.4 million people with a sub-par FICO credit score. Due to 600 below credit score, American borrowers will have a hard time likely to gain access to low interest rates on loans and mortgages.

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