Americans' credit scores fall as they struggle to pay bills

By Kathy Chu, USA TODAY

As more consumers struggle with bills, their credit scores are paying a price.

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."

Becker believes credit scores aren't likely to improve — and could even drop further — through the second quarter of 2010.

(Full article at USA Today)