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.