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American Consumers Are More Likely Than Ever To Default On Loans, Bills, Study Finds

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Mary Pilon, who holds down the fort at The Wallet, takes a look at data that were released by TransUnion today. According to the Credit Risk Index, which TransUnion created about a decade ago, extending credit to American consumers is nearly 25% more risky than it was just ten years ago. From the Wallet:Lenders use the Credit Risk Index to determine creditworthiness in different geographic areas. The index baseline is 100, but it rose to 124.79 at the end of 2008 — meaning that consumers are defaulting on accounts, loans and so on with greater frequency and in bigger numbers.The data is used at a broad level and has no bearing on individual loans and lines of credit. But for consumers, this number helps explain why it’s much harder to secure a loan these days, and might hint at why more people are receiving notices from their credit-card company, informing them that their credit limit’s been cut.Read the rest of Mary’s story here.You can read TransUnion’s press release here.

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American Consumers Are More Likely Than Ever To Default On Loans, Bills, Study Finds

Array

Mary Pilon, who holds down the fort at The Wallet, takes a look at data that were released by TransUnion today. According to the Credit Risk Index, which TransUnion created about a decade ago, extending credit to American consumers is nearly 25% more risky than it was just ten years ago. From the Wallet:Lenders use the Credit Risk Index to determine creditworthiness in different geographic areas. The index baseline is 100, but it rose to 124.79 at the end of 2008 — meaning that consumers are defaulting on accounts, loans and so on with greater frequency and in bigger numbers.The data is used at a broad level and has no bearing on individual loans and lines of credit. But for consumers, this number helps explain why it’s much harder to secure a loan these days, and might hint at why more people are receiving notices from their credit-card company, informing them that their credit limit’s been cut.Read the rest of Mary’s story here.You can read TransUnion’s press release here.

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