As the economic recession worsened, many Americans’ credit scores took a hit, affecting whether or not they were approved for loans. Although those with bad credit should know that they will be approved for a car loan in many cases, consumers should also keep up-to-date on how the country is coping with economic stress as a whole.
In many ways, Americans are cutting back on spending. Recent data suggests that delinquent payments on credit cards have fallen in recent months, meaning credit scores could see a jump in a few months’ time.
Consumers are also carrying less plastic in their wallets nowadays. Credit bureau Experian recently revealed that most Americans carry an average of 3.08 credit cards. That number has fallen sharply from 2007’s total of 4.14 cards, a 26 percent decrease. Buyers are also holding less of a balance on their cards, down 4 percent to $5,843 on average.
That data suggests that Americans are getting serious about improving their bad credit scores.
Experian is one of the three major credit bureaus, along with Equifax and TransUnion, that are responsible for Americans’ credit scores, which determine how likely they are to be approved for car loans, mortgages and credit cards.