High & Low Credit Scores
Classified as: Interest Rates
With the recession that had hit the U.S. economy, it had pushed people over the edge after being sacked from jobs hence being unemployed and having to spend more through credit. The number of people below the score 599 rose from 15% to 25.5% which shows how many people were affected due to this. A general trend was believed to be seen that the rich people got richer where as poor people got poorer under those conditions. The main reason for this would be the hardship faced by a common man who would be looking for a job in times of recession and facing a lot of tough competition.
With the awareness of how better credit score benefits people, they have learnt to pay down their debt to increase their credit score. If a person knows how to calculate their credit score then they would do a better job and keeping their score up and being less in debt. But this would only apply to those people who are motivated and do not have any financial difficulties.
Those people who are lie in the bottom tier of the lowest credit score will have a great deal of trouble having to make their score better as they would also be charged with high interest rates and fees. Most of the credit card issuers are still trying to recover from the hole that they fell into during the recssionary period to try and get their money backas all dealings are based on credit and no cash is involved. The number of credit card offers sent to U.S. households grew 45% in the first five months of 2009, however the percentage offered to those with a score lower than 660 has fallen from 20% to just 4%. This shows how limited credit card companies have made their offerings.
However, those who wish to have a credit card then they would have to resort to the secured credit card option. This means that they would have to deposit money with the bank and would get it back when they close the account. This doesn’t means that you would not have to make the regular monthly payments which would obviously have to be made based on your expenditure. If you wish you increase your credit limit then you could deposit more money.
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