Minneapolis-based FICO: Credit scores reaching new lows
August 10, 2010 | Dan Rafter | Print Article | Email this Article
If you work in the commercial real estate business you know just how frustratingly slow this economic recovery is. In fact, it doesn’t feel like a recovery at all.
Even though you don’t need it, here is yet more evidence that the recession and its weak recovery is still hurting consumers: The average credit score of U.S. consumers has hit a new low. Minneapolis-based FICO, which provides the most important credit score in the business, says that 25.5 percent of U.S. residents who have credit scores have scores that are at 600 or lower. That’s more than 43 million people.
Of course, a score of 600 or lower is a terrible one. These people will struggle to borrow money. This ends up bringing more pain to the national economy: Consumers who can’t borrow don’t often spend much, either. We need consumers to start spending again if we want an economy in which new stores and office buildings are in demand.
Unfortunately, the big credit-score fall indicates that we should brace ourselves for many more months of a recovery that doesn’t feel like one.
Tags | credit scores, economy, FICO, Minneapolis, Office, recession, recovery, Retail
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