Most Americans Suffer from Low Credit Scores

Your credit scores have a significant impact on your financial life. They can affect your loan rates, your insurance premiums, or even your job application.

In the United States, three credit bureaus – Experian, Equifax, and TransUnion – provide credit scoring for more than 200 million U.S. citizens. If you want to know your credit scores, just go to these agencies.

For those who want to know how Americans are faring when it comes to their credit scores, here are some statistics that you need to ponder over to help you pinpoint the common credit problems most Americans are facing and how to avoid getting low credit scores.

Around 18% of Americans Have Subprime Credit Scores

Having scores between 580 and 669 means that you have subprime credit scores. According to a study, 18% of United States consumers have credit scores that fall into this numerical range.

If you have a subprime credit score, you can still avail of more advantageous financing than those with lower scores. However, you might find it difficult to qualify for premium credit cards or better mortgage deals.

11% of Americans Have “Very Poor” Credit Scores

It’s common for many people to have credit problems, but having “very poor” credit scores only make 11% of U.S. consumers. The “very poor” category has a score range of 300 to 579. It’s the lowest range in the FICO credit scoring system.

Folks who have “very poor” credit scores often have a hard time getting a loan or credit card approval. Their only chance is to go to lenders that offer no credit checks or allow bad credit loan applications. The catch with such offers is that they have unfavorable borrowing terms and super high-interest rates.

53% of U.S. Consumers Have Been Turned Down Financing

Yes, more than half of U.S. consumers have been turned down for a mortgage, credit card, car loan, and other forms of financing because they have low credit scores.

The main reason Americans have poor credit scores is financial illiteracy. A majority of them are not aware of their credit scores, and they incur debts that they can’t afford.

We all know that not paying your loans or credit cards on time or defaulting on them lowers your credit score. So, it’s crucial to learn financial literacy to ensure that you know how to save money for emergency expenses, avoid getting more debts, and maintain healthy credit.


Now you know the statistics relating to the credit scores of U.S. consumers. Your credit score is crucial for your financial well-being. So, you must keep it under the “good” or “exceptional” category for you to get better deals when it comes to financing.

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