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Debt Management

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Summary

Consumers with bad credit should not feel alone, since millions of other Americans also fall into the subprime lending category.

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It can be a major bummer to have bad credit. Having bad credit makes it tougher to borrow money, and when you are approved by a lender, the interest rates you get charged are usually higher.

But look on the bright side: you’re not alone! In fact, the number of U.S. consumers who fall into the bad credit or subprime category is massive.

Whether you have bad credit is reflected by your credit score. Credit scores range from 300 to 850, with the bulk of consumers generally having scores in the 600s and 700s.

Lenders typically consider a credit score below 600 to be risky or “subprime.” Approximately 15 percent of consumers who have credit scores fall into this segment.

Breaking it down further, about 8 percent of consumers have a credit score between 550 and 599, with around 5 percent having a score between 500 and 549, and 2 percent of consumers having a credit score below 499.

Millons of people do not have enough record of credit to qualify for good terms. Even though a large percentage of these consumers are as financially responsible as those with good credit, the companies they have dealt with may not report information to the credit bureaus.

Until these consumers begin to establish credit elsewhere, they can be left with low credit scores.

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The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

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Credit Card Rate Report Updated: August 5th, 2020
Business
13.91%
Airline
15.48%
Cash Back
16.09%
Reward
15.82%
Student
16.12%

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