Credit Scores Fall Nationwide During First Quarter
Posted on April 22nd, 2011
Credit scores fell during the first quarter, according to the CreditKarma.com U.S. Consumer Credit Score Climate Report.
Nationwide, the average credit score fell two points to 665 as two more states became classified as having “fair to poor credit scores of 650 of lower.”
There are now nine states holding that dubious distinction, including Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and West Virginia.
Mississippi is the worst state in the nation in terms of credit score, with an average score of just 632, which is just above “subprime” status.
Conversely, California led the nation in credit score quality, with an average of 684, which is on the lowest-end of “good” according to my credit score range.
Overall, 31 states saw credit scores go down during the quarter, while only six states were able to raise their credit scores.
During the first quarter, the average consumer with an account:
- Decreased credit card debt six percent to $6,767 – Decreased home mortgage loans two percent to $171,052 – Decreased home equity two percent to $48,330 – Stabilized auto loans at $15,107 – Increased student loan debt two percent to $29,240
CreditKarma CEO Ken Lin noted that despite consumers’ efforts to reduce credit card debt, credit scores still dropped, which he attributed to ongoing economic pressure and continuing unemployment.
CreditKarma provides free credit scores and credit reports without the need for a credit card (see my Credit Karma review)
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Tags: Credit Scores, First Quarter, Quarter
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