GITNUX MARKETDATA REPORT 2024

Must-Know Bad Credit Statistics [Recent Analysis]

Highlights: Bad Credit Statistics

  • Around 33% of Americans have a bad FICO credit score (between 300-620).
  • In 2021, the average credit score in the United States was 711, with around 16% of adults having a credit score lower than 579.
  • Approximately 12.4% of consumers had bad credit with scores between 500 and 600 in 2018.
  • In 2021, the average FICO score for borrowers receiving subprime loans (bad credit) was 548.
  • Approximately 43 million Americans have medical bills that negatively affect their credit score.
  • Over 10% of US consumers had bad credit scores between 300 and 499 in the fourth quarter of 2018.
  • Approximately 25% of Americans surveyed in 2021 said they did not know their credit score.
  • A 2020 study found that Hispanics have the highest share of bad credit scores among all ethnic groups in the US, at 18.4%.
  • Nearly 1 in 4 adults (23.8%) have never checked their credit reports, potentially leading to a bad credit score without being aware.
  • Approximately 53% of people with bad credit do not know how long negative information stays on their credit report.
  • It takes about 12 to 18 months, on average, for an individual to improve their bad credit rating.

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Bad credit can have a significant impact on an individual’s financial life, from higher interest rates and insurance premiums to limited access to loans. Unfortunately, bad credit is more common than many people realize. According to recent statistics, around 33% of Americans have a bad FICO score (between 300-620), the average US credit score in 2021 was 711 with 16% having scores lower than 579, 12.4% had scores between 500 and 600 in 2018; 43 million Americans are affected by medical bills that negatively affect their credit score; 30% of total bankcard originations went to consumers with subprime or near prime ratings in 2018; 47% of millennials surveyed said they made at least one late payment resulting in negative impacts on their creditscore; over 10 percent had scores between 300 and 499 during fourth quarter of 2018; those with badcredit often pay up to 36 % for personal loans while the average FICOscore for borrowers receiving subprime loan was 548 ; 50 %of adults unaware about effects on finances due topoor creditscores ; 25 % not aware about own creditscore , 9 percent unemployed individuals below 550 considered asbadcredit , 17 – 22 %interest rate for carloansfor new purchase &16 – 21 used vehicles respectively ; 18 . 4percent Hispanics highest share among all ethnic groupswith poorcreditscore , 70 percentpersonal loan granted above 660 leavinglimited options forbadcredit holders & 53percent do not know how longnegative information stayson report . It takes approximately12-18 monthsfor improvingpoor rating . Thus it is importantto be awareabout these facts related tobad creditto make informed decisions regardingfinancial matters

The Most Important Statistics
Around 33% of Americans have a bad FICO credit score (between 300-620).

This statistic is a stark reminder of the prevalence of bad credit in the United States. It highlights the fact that a significant portion of the population is struggling with their finances and may be unable to access the credit they need to make important purchases or investments. This statistic is a call to action for those who are in a position to help those with bad credit, whether through financial education or other means.

In 2021, the average credit score in the United States was 711, with around 16% of adults having a credit score lower than 579.

This statistic is a telling indication of the prevalence of bad credit in the United States. With 16% of adults having a credit score lower than 579, it is clear that a significant portion of the population is struggling with their credit. This statistic is an important reminder of the need for financial literacy and the importance of maintaining a good credit score.

Bad Credit Statistics Overview

Approximately 12.4% of consumers had bad credit with scores between 500 and 600 in 2018.

This statistic is a telling indication of the prevalence of bad credit in the consumer population. It highlights the fact that a significant portion of consumers are struggling with their credit scores, and that this is an issue that needs to be addressed. It also serves as a reminder that bad credit can have serious consequences, and that it is important to take steps to improve one’s credit score.

In 2021, the average FICO score for borrowers receiving subprime loans (bad credit) was 548.

This statistic is a telling indication of the current state of bad credit in the United States. It reveals that, despite the economic recovery from the pandemic, many borrowers are still struggling to access credit due to their low FICO scores. This statistic serves as a reminder that bad credit is still a major issue in the US and that more needs to be done to help those with poor credit access the financial services they need.

Approximately 43 million Americans have medical bills that negatively affect their credit score.

This statistic is a stark reminder of the financial burden that medical bills can place on individuals and families. It highlights the fact that medical debt can have a long-term impact on a person’s credit score, making it difficult to access credit and other financial services. This statistic is a powerful illustration of the need for better access to affordable healthcare and financial assistance for those struggling with medical debt.

In a 2020 study, 47% of millennials surveyed said they had made at least one late payment on their existing debt, causing a negative impact on their credit scores.

This statistic is a stark reminder of the reality that many millennials are facing when it comes to their credit scores. It highlights the fact that late payments can have a significant and lasting impact on one’s credit score, and that this is an issue that needs to be addressed.

Over 10% of US consumers had bad credit scores between 300 and 499 in the fourth quarter of 2018.

This statistic is a stark reminder of the prevalence of bad credit in the US. It highlights the fact that a significant portion of the population is struggling with their credit scores, and that this is an issue that needs to be addressed. It also serves as a warning to those who may be on the brink of having a bad credit score, as it shows that it is not an uncommon occurrence.

Approximately 25% of Americans surveyed in 2021 said they did not know their credit score.

This statistic is a telling indication of the prevalence of bad credit in the United States. It suggests that a significant portion of Americans are unaware of their credit score, which could be a sign of financial illiteracy or a lack of access to credit-related information. This statistic is a reminder that bad credit is still a major issue in the US, and that more needs to be done to educate people about their credit and how to improve it.

A 2020 study found that Hispanics have the highest share of bad credit scores among all ethnic groups in the US, at 18.4%.

This statistic is a stark reminder of the financial disparities that exist between different ethnic groups in the US. It highlights the fact that Hispanics are disproportionately affected by bad credit scores, and that more needs to be done to ensure that all Americans have access to the same financial opportunities.

50% of US adults with bad credit scores are not aware of the negative effects on their finances, including higher interest rates and insurance premiums.

This statistic is a stark reminder of the importance of understanding the consequences of bad credit. It highlights the fact that half of US adults with bad credit scores are unaware of the financial repercussions of their credit score, such as higher interest rates and insurance premiums. This statistic is a call to action for those with bad credit to become more informed about the potential financial pitfalls of their credit score.

Nearly 1 in 4 adults (23.8%) have never checked their credit reports, potentially leading to a bad credit score without being aware.

This statistic is a stark reminder of how many people are potentially unaware of their credit score and the potential consequences of not monitoring it. It highlights the importance of regularly checking credit reports to ensure that any errors or discrepancies are identified and addressed in a timely manner. Without this knowledge, individuals may be at risk of having a bad credit score without even knowing it.

Approximately 53% of people with bad credit do not know how long negative information stays on their credit report.

This statistic is a telling indication of the lack of knowledge many people have about their credit reports. It highlights the need for more education and awareness about the importance of credit reports and how to manage them. It also speaks to the need for more resources to help people with bad credit understand their credit reports and how to improve their credit scores.

It takes about 12 to 18 months, on average, for an individual to improve their bad credit rating.

This statistic is a crucial reminder of the importance of being mindful of one’s credit rating. It highlights the fact that it takes a significant amount of time and effort to repair a damaged credit score, and that it is not something that can be done overnight. This serves as a warning to those who may be tempted to take risks with their credit, as it could take a long time to recover from any mistakes.

Conclusion

The statistics presented in this blog post demonstrate the prevalence of bad credit scores among Americans. Approximately 33% of adults have a FICO score between 300 and 620, while 16% have a score lower than 579. Additionally, 12.4% had bad credit with scores between 500 and 600 in 2018, resulting in interest rates up to 36%. The average FICO score for borrowers receiving subprime loans was 548 in 2021, and 43 million Americans are affected by medical bills that negatively impact their credit scores. Furthermore, 30% of total bankcard originations went to consumers with subprime or near-prime credit ratings last year; 47% of millennials surveyed said they made at least one late payment on existing debt; over 10 percent had bad credits below 499; people with poor credit pay more for homeowner’s insurance; 25 percent do not know their own rating; 9 percent unemployed individuals have low marks as well – 17%-22 % higher interest rate on car loan if you’re buying new/used vehicle respectively ; 18.4 % Hispanics having highest share amongst all ethnic groups & 50 % unaware about negative effects due to poor financial health . It takes an average time period ranging from 12-18 months for someone to improve his/her bad Credit Score . All these facts point towards the need for greater awareness regarding how important it is maintain good financial health through responsible borrowing habits so as avoid any long term repercussions associated with Bad Credit Scores

References

0. – https://www.crediful.com

1. – https://www.experian.com

2. – https://www.money.com

3. – https://www.cnbc.com

4. – https://www.nbcnews.com

5. – https://www.prnewswire.com

6. – https://www.urban.org

7. – https://www.businessinsider.com

8. – https://www.enterprisenews.com

FAQs

What causes bad credit?

Bad credit can be caused by various factors, including missed or late payments, filing for bankruptcy, defaulting on loans or credit accounts, high credit utilization, and having a short or no credit history.

How does bad credit impact an individual's financial life?

Bad credit can lead to higher interest rates on loans and credit cards, difficulty in getting approved for credit, increased insurance premiums, difficulty in finding housing, and potential challenges when applying for jobs that require a credit check.

What are common credit score ranges, and where does bad credit fall on this scale?

Credit scores typically range from 300 to 850. Bad credit is generally considered to be a score below 580, with fair credit ranging from 580 to 669, good credit from 670 to 739, very good credit from 740 to 799, and excellent credit at 800 and above.

How can individuals improve their credit score?

To improve their credit score, individuals can pay bills on time, reduce their overall debt, maintain low credit utilization (below 30%), keep their existing credit accounts open and in good standing, avoid applying for multiple new credit accounts in a short period, and periodically review their credit report for errors.

What are some options for borrowers with bad credit to obtain financing?

Borrowers with bad credit may still have access to financing through secured loans, credit-builder loans, co-signed loans, or working with lenders who specialize in providing loans to individuals with lower credit scores. Additionally, they may consider credit unions, which often provide more flexible lending options for members.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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