AFSCME 3357-HOF'S BLOG

The Credit / Credit Score Paradox
Credit Card Balances Decrease - but Credit Scores Do Too

Collections and Credit Risk reports that US consumers are, in the aggregate, carrying lower credit card balances, and credit card charge offs (defaults) are going down. That would make consumers better credit risks, right? Apparently not, because credit scores are going down. Reduced credit scores might be due to increased auto debt (4%) and student loans (up 10%).