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SHOCKING CREDIT CRASH! America’s Average Credit Score PLUMMETS!
In a jaw-dropping revelation that has financial experts SHAKING, the average credit score in the U.S. has taken a NASTY nosedive, dipping two points from last year! The latest stats from FICO show the score now sits at a precarious 715—DOWN from 717 just a year ago!
Is a Recession Looming? Experts Sound the ALARM!
This alarming drop is not just a minor hiccup; it’s the FIRST time since the CHAOTIC days of the Great Recession that we’ve seen such a dramatic fall in the average FICO score! With scores ranging from a measly 300 to a perfect 850, a score of 715 may still be considered “good,” but the two-point spiral has financial alarms BLARING across the nation!
Why has this drop happened? More Americans are falling behind on their loan payments than ever before—DELINQUENCY rates for auto loans, credit cards, and personal loans are nearing levels we haven’t seen since the financial crisis of 2009! economist Amy Crews Cutts declared this CRISIS is sounding “more consistent with an economy in recession than one still in expansion.”
And yes, while the U.S. hasn’t officially declared a recession (yet), the whispers are LOUD. Moodys’ chief economist Mark Zandi warns that the chances of a recession in the next year are now “UNCOMFORTABLY HIGH.”
Gen Z Gets Crushed by Credit Score CRISIS!
Hold onto your wallets! While Gen Z is just kicking off their financial journeys, they’re getting WHACKED! Born between 1997 and 2012, these young borrowers are staring down an average credit score of 676—39 points LOWER than the national average!
Their situation is even more dire, with their credit scores dropping THREE points in just one year! Experts attribute this disaster to missed federal student loan payments, with delinquencies coming back after a five-year HOLIDAY from reporting.
Tommy Lee, FICO’s senior director, paints a bleak picture: “Worse times are ahead as additional delinquencies are expected soon!” Just WAIT until they hit six months overdue—the penalties will be PUNISHING!
Student Loan Nightmare: Scores Plunge by 150 POINTS!
Did you know that a single student loan delinquency can send your credit score CRASHING down? Research from the New York Federal Reserve Bank reveals catastrophic drops—over 150 points for some borrowers!
For those already struggling with scores below 620, being late on student loans can hack off a brutal 87 points. Meanwhile, those with stellar scores above 760—WATCH OUT—their scores can plummet by an AVERAGE of 171 points!
Right now, a whopping 2.7 million student loan borrowers already have a delinquency on their record, and another 5.4 million are teetering on the edge, having not made a SINGLE payment this year!
America, brace yourself! This financial roller coaster is just getting started!
photo credit: money.com
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