American Credit Scores Remain Steady Despite Financial Struggles
A recent study shows that, despite an ailing economy, Americans’ credit scores remain steady across the board. The study was conducted by CredAbility, the consumer credit counseling service formerly known as the Consumer Credit Counseling Service of Greater Atlanta. CredAbility’s quarterly index measures the country’s financial health in the employment, housing, household budget, net worth, and credit score sectors.
On CredAbility’s 100-point index, a score of 70 or below represents financial distress. The average combined score of the five sectors has remained below 70 for seven months, despite a slight improvement during the first quarter of 2010, Bankrate reports. But there is some good news. American credit scores have held steady in the high 70s or low 80s for four years straight, the financial website reports.
The consumer credit index has remained steady because more Americans are making the effort to improve their credit scores and manage their debt, CredAbility counseling senior vice president Michelle Jones told .
Even during periods of financial hardship, consumers should do everything they can to pay their bills consistently and on time to avoid a drop in their credit scores. Credit counseling may help some struggling consumers create a budget to pay off debt and get back on track.
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Date: June 4, 2010
Categories: Credit Score