This morning in the Birmingham News there is an article entitled “Credit Scores Sixth Lowest In U.S.” by Roy L. Williams. We recommend everyone read this fine article, particularly our Alabama readers. Here is a brief excerpt:
The average credit score in Alabama was the sixth-lowest in the nation last year, meaning a greater percentage of state consumers may face difficulty getting loans or face higher interest rates, according to a new survey by Credit.com.
The San Francisco-based credit research firm found the average credit score in Alabama was 672. Four of the other lowest scores were also in the Southeast – South Carolina, at the bottom with 665, followed by Georgia, Mississippi and Louisiana tied at 667. Wisconsin had the nation’s highest average: 717.
Credit scores range from a low of 300 to a high of 850, based on the Fair Isaac Corp. credit scoring system commonly used by lenders. John Ulzheimer, head of Credit.com Education Services in Atlanta who presented a free credit seminar in Birmingham last Saturday, said a lack of financial education and high debt loads are major reasons behind Alabama’s poor credit scores.
Rod McCall, who is a vice president at Wachovia has this suggestion:
One key first step before approaching a lender is for consumers to obtain credit reports, available free once a year from the three credit bureaus, and finding out their credit scores, McCall said. Then they can get advice on ways to improve their scores and get the best loan, he said.
Thanks to Roy Williams for this good story.
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