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Revitalize Your Credit; Take Back Your Life

Revitalize Your Credit; Take Back Your Life

Although Equifax recently reported that fewer Americans are struggling with bad credit, 25.2% continue to try to bring their credit score back from the dead.

Last month Equifax found that the overall share of consumers with Equifax credit scores under 620 dropped by 0.7% going from 25.9% to 25.2%. Credit scores beneath 620 are considered to be subprime.

Some areas of the country are doing better than others. For example, Chicago is seeing the widest decline in subprime borrowers, whereas Houston experienced an increase in those with a credit score of 620 or less. Plenty of factors come into play including job market and demographic variations.

“Consumer credit scores are improving in most major metropolitan areas,” Trey Loughran, president of the Personal Solutions division at Equifax told The Sacramento Observer. “The job market is improving and time is starting to heal the wounds of the Great Recession.”

Committing Credit Score Homicide

Many economists point to the housing market downfall as the main culprit, however numerous elements are culpable as well:

Of course defaulting on any loan will tank your credit score so not overextending yourself and being sure you can afford what you purchase is imperative.

How a Credit Union Can Help

If you are a borrower who continues to struggle with trying to improve your score, there is hope. Credit unions across the country offer a menu of products and services that can get you back on the right track.

For example, Austin Telco Federal Credit Union ($1.2 billion, Austin, TX) offers Fresh Start Checking that includes the benefits of a free checking account, plus a Visa Check Card. Other credit unions, like Neighborhood Credit Union ($300 million, Dallas, TX) has an educational component that provides seminars on how to manage credit.

By Gina Ragusa
Published February 15, 2013
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