FICO Credit Scores by Equifax and Transunion Show 25% of Americans Below 600 or Considered Bad Credit

Posted on | July 23, 2010 | No Comments

FICO credit scores, which are sold directly to consumers using Equifax and Transunion, are dropping each and every month.  The latest data, from April 2010, shows that 25% of Americans have a credit score below 600.  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.


Historically, above 15% of Americans have a FICO credit score below 600.  With this being the case, almost 20 million more American citizens have a credit score below 600.  The US is currently seeing 43.4 million people with a sub-par FICO credit score.  Those with moderate credit scores declined from 15% to 11.9% and one could suspect that much of this decline is due to the fact that many of these borrowers dropped into the “bad credit” category.

By having a credit score below 600, Americans will likely find it very difficult to gain access to low interest rates on loans and mortgages.  It is also commonly the case that low credit scores also lead to a higher chance of default on current loans and credit cards.

Author: Alan Lake

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