Credit Scores Drop, Making More Americans Poor Lending Risks

Before you go, we thought you'd like these...
Before you go close icon
The days of living large on debt are coming to a crashing halt, as more than a quarter of U.S. consumers are generating low credit scores. Credit reporting company FICO Inc. reported that 25.5 percent of all consumers, around 43.3 million, have credit scores lower than 599, making them a poor credit risk in the eyes of mortgage lenders. Historically, that number has been closer to 15 percent. In positive news, more Americans than ever have scores higher than 800, increasing the segment of consumers with excellent credit to 17.9 percent. That's significantly higher than the historical average of around 13 percent. The overall conclusion? Folks are cutting back expenses, either by choice or not.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a New Home

Buy
Rent
Value
Powered by Zillow

From Our Partners

This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge
19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked