Credit scores falling
May 27, 2009 | USA Today, Uncategorized, alternatives, industry, regulation | Comments (1)From USA Today (a paper that is covering the credit crisis better than any in the country):
From the third quarter of 2008 to the first quarter of 2009 — the latest data available — the average TransUnion credit score dropped 6 points to 651, the credit bureau says. Scores fell more dramatically in states hardest hit by the housing bust: California saw a 10-point drop, for example, and Arizona, 11.
“Consumers are feeling the bite of the current recession,” says Ezra Becker, a director in TransUnion’s financial services group. “With delinquencies showing up in credit files, it’s not surprising that the average score is decreasing somewhat.”
So what are the implications for the payday lending industry? Will more consumers be turning to payday loans or will defaults increase, or both?
Comments»
I’m a little surprised by the 651 average. I would have expected it to be lower.