Credit Scores and their Meaning to Massachusetts Consumers
Our personal bankruptcy clients have many questions regarding their credit scores. We have written numerous times on this topic. Today we want to remind clients that while having a top credit score is nice, having an average credit score means paying more interest on loans. On the other hand, having a score below 650 begins to mean trouble. According to a FICO report released this week, 35% of all consumers have credit scores below 650 which makes them unworthy for prime loans for credit cards or other loans. 25.5% scored below 600.
The reasons for this mainly include a run up in credit card debt and, of course, defaults. There are many simple ways to attack this problem, mostly focusing on: reducing debt!
While we help clients with personal bankruptcies, we also help clients with budgeting, prioritizing, and often with negotiating one or more of their debts.