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Some argue that lower FICO scores is very healthy and is caused by our insatiable appetite for things that require us to borrow too much. This is simply untrue. For any of you who know something about FICO scores, you know you do not end with scores below 650, well below 650 in most cases, to be provided and / or non-guaranteed debt.

No, the real reason why stop there because the negative information is hitting your credit report. Debt contributes to very low scores, but scores very low. These data reflect the FICO is an extraordinary number of consumers are caught, settlements, compromise attention, collections, bankruptcies, liens, judgments, delinquencies and foreclosures on their credit reports and scores significantly lower result .

What makes these new more disturbing is the fact that the elements mentioned above are negative in terms of credit from seven to ten years. This means that the scores are below the trend will continue so for many years to come and to avoid any economic recovery based on the consumer. Add to that an unemployment rate of underemployment of about 10% (of people, but to do what they did), that is much higher, and have a good news really bad.

The only positive point in the data that FICO is the negative information will eventually be removed from credit files. And it can not last indefinitely. And, since it is losing negative value, which means that if you are there, your score will improve organically over time. Its only going to make loans, credit cards, insurance more expensive in the coming years.

Therefore, these data FICO digest and then discard it, because whatever the reason at present there are 70 million consumers with FICO of 650 or less, what really matters is that FICO scores are. And as you learn from reading about me in the coming months / years, the FICO score is very individual on the basis of what has recently become rather than what we have done all the recent events. Thank God for this!.

If Americans have not seen a consumer lifestyle that is beyond their means, have to place your possessions.4 likesReply. Yes, but many of these attacks, settlements, collections, bankruptcies, etc. are probably due to spending programs or not.

Not sure if Allen. Most people file bankruptcy for reasons other than irresponsibility. I mean, be honest, the loan to buy a house is technically living beyond our means, especially if we lose our job.1 likeReply. I'm not saying that we, the consumers have to bear the burden here, but we are certainly not the case. And certainly nobody expected or wanted an unemployment rate of 10% and an unemployment rate much higher.

And what are those 27% of people with a low score anyway? You can not tell me that is good for our country has more than a quarter of the nation regularly missing payments, exclusion, and the experience of all problems and other financial instruments that led to a 650 points <. I think it's indicative of a culture that should be a little "more focused on savings rather than spend.

Low credit scores are the first step likeReply. How stupid to put money in a bank of large investment bank in the seas in a crazy scheme. Why not take the money home and invest in you? The entire system must change.

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