Almost 50 million Americans are now considered ‘subprime borrowers’ – after higher living costs led to missed debt payments which damaged credit ratings.
Compared to just a year ago, an extra 1.2 million now have credit scores in the lowest-possible 300 to 600 range.
At this level, the score is below what is needed to get get the best or ‘prime’ interest rates. Some banks might avoid giving credit cards or auto loans altogether – as people in this range are seen as much riskier to lend to.
A score below 601 also makes it difficult for Americans to rent properties, take out mortgages or even phone plans.
Meanwhile, Americans in with a top ‘prime’ credit score has dropped to under a third for the first time.
Read the full story in the Daily Mail.
