It's been more than 10 years since the big recession hit the Americans, and some people's credit points do better than others. For all age groups, the average of 2018 was 680, still five points down from the 2008 average. However, it only tells half of the story.
A decade after the bottom fell out of the housing market, some people's credit points decreased and have not restored the page. Older people saw the sharpest credit score drops from 2008 to 2018, according to new data from Experian
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A decade after the bottom fell out of the housing market, some people's credit values decreased and have not recovered.
The average credit score of consumers aged 72 and over dropped 40 points from 772 to 732, the credit agency said. It was the biggest decline for all age groups. The second largest decline was reserved for consumers aged 51
On a more positive note, the 18- to 21-year-olds had the largest increase, a 23-point growth from 616 to 639, while the 22- to 35-year-olds experienced a 15-point jump in their credit score from 629 to 644. The 36- to 50-year-old demographic had a nine-point slip from 669 to 662.
How VantageScore works: For a score with an interval between 300-850, a credit score of 700 or higher is generally considered good, according to Experian. A score of 800 or over in the same area is considered excellent. Most credit points fall between 600 and 750.
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Lori Trawinski, Director of Banking and Finance at the AARP Public Policy Institute, said seniors have had "sharp increases in the amount of debt of all types." Wage costs that exceed pensioners' interest rates are one reason why their credit values have not recovered, she said.
An unexpected loss of work and / or a serious illness were two curve balls that could interfere with the economy of older citizens
If a spouse dies, the surviving partner can still face the same housing costs with less income. An unexpected loss of work before a planned pension and / or a sudden major illness were other cruel curves that could interfere with the economy of retirees, Trawinski said.
She is concerned about the economic stability of older Americans. Initially, they live longer and those who are short on savings may be too weak to work. A new study said that 5.5 million older people, or 7.7% of the elderly population, could not afford all the food they needed in 2017.
People live longer. Men in 2015 had a life expectancy of 76.3 years, up from 70 in 1980, according to the Centers for Disease Control and Prevention. Women had an expected life of 81 years in 2015, up from 77 in 1980. "Many people find themselves unprepared," Trawinski said.
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But Kelley Motley, senior analyst at Experian, said there are technical reasons for the credit score swoop. Older Americans carried higher amounts of fluctuating debt on credit and retail cards and used fewer cards to draw on the same credit lines more often, she said.
Older Americans had higher amounts of fluctuating debt on credit and retail cards, and also used fewer cards.
Credit points are based on factors such as how often you use credit and the relationship between debt and available credit. Experian is one of the country's three major credit agencies, along with Equifax
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