Little Change in Credit Scores in 2011
Some financial analysts have been wondering just how much the economy will recover in 2012 and regarding credit debt and how people are dealing with it, it would appear that the shopping season during the holidays in 2011 was actually quite successful for many companies and that although some people are trying to figure out how to reduce their credit card debt, credit scores haven’t seen an appropriate jump due to the lower levels of credit card debt. Debt payments in December actually slowed down by the end of the year, which was quite surprising after they had been reduced for months.
A recent report that was constructed by a credit management agency suggests that overall credit card debt was on a decline over the course of the year. Many people suggested that it would have been quite normal for a reduction in credit card debt to have meant that the average credit score would have increased, but this has not been the case as credit scores apparently didn’t go up despite the fact that people were carrying around less debt.
One of the reasons for this sinking of credit scores was the issues surrounding the lowering of people’s credit limits across the board which is still being seen by many card holders who have gotten surprising notices in the mail lately regarding an overall reduction in the amount of credit that is available on their accounts and as most people know, one of the biggest determinations in a person’s credit score is how much credit they have available versus how much credit they have borrowed.
