Consumer credit and its availability in Fort Wayne today
Posted by Mike Sylvester - 10/11/08 @ 7:55 pm - Filed Under Featured, Local Politics
When you borrow money your credit score (FICO score) is extremely important. Based on your FICO score lenders are able to assess the risk of default on the loan.
FICO scores range from 300 - 850. The higher the score the more “creditworthy” you are considered.
Today in America the median credit score is 723.
Each lender has its own rules and these rules change based on current economic conditions. Overall:
- Those with a credit score of 720 or higher are considered good credit risks and will be able to get the best credit rates available.
- Those with credit scores between 600 and 720 are considered to be more risky and are considered to be “near prime.”
- Those with credit scores below 600 are considered poor credit risks and will get the highest rates of interest.
Today in Fort Wayne if your credit score is 720 or higher you can purchase a new house, purchase a new SUV, etc. There is plenty of money for you to borrow and you will get a favorable rate. The only people at all effected by the current financial crisis are those who are not considered good credit risks. The media has done a poor job of explaining this to America. About half of Americans can still go out and borrow large sums of money at (prime) low interest rates!
Many more Americans can still go out and borrow money; however, at higher interest rates.
Nationally 13% of Americans have a credit score of 800+ while 15% have a score below 500.
Mike Sylvester
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