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Credit Scores Plunge as Consumers Twist in Wind
Average drops 6 points, likely to fall further
By Kevin Spak
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Posted May 27, 09 1:55 PM CDT
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(Newser)
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Consumers are caught in the credit crunch, and their scores are starting to show it, USA Today reports. The average TransUnion credit score fell 6 points between the third quarter of 2008 and the first of 2009, and the group’s financial services director expects it to fall even more through 2010. “Consumers are feeling the bite of the current recession,” he says. “It’s not surprising.”
Some states have seen even bigger drops—California and Arizona averages are off 10 and 11 points respectively. TransUnion’s scores aren’t as widely used as standard FICO scores, but one credit expert says the data are still significant, and in line with other figures. In the first quarter of 2009, for example, credit card delinquencies hit a record 6.5%, according to the federal reserve.