According to FICO, the average consumer has 13 credit obligations, including credit cards and auto loans. Juggling these financial responsibilities can be tricky in a rough economy. However, those struggling with bad credit should be comforted by the fact that they’re not alone.
Recent data released by FICO shows that 25.5 percent of consumers now have a credit score of below 599, typically known as “bad credit.” In the past two years, more than 2.4 million have joined those ranks. That figure is 10 percent higher than the historical average of 15 percent, showing that the recession has taken its toll on credit scores.
Many Americans may have seen their credit scores drop in the wake of the country’s financial crisis. However, those with a score below 599 should know that many others have the same problem and that their score does not necessarily make them ineligible for car loan financing. There are many organizations that offer a bad credit auto loan, and drivers who have been putting off a car purchase because of the economy may be surprised to find that their score will qualify them for a late-model used vehicle or possibly even a new car.