The credit scores of millions more Americans are sinking

Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders. It's unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.

Because consumers relied so heavily on debt to fuel their spending in recent years, their restricted access to credit is one reason for the slow economic recovery.

A credit score decreases when you pay your bills late and are in debt. With 14.6 million Americans unemployed, many people are relying on credit cards to make ends meet – even if it means getting into debt and ruining the credit score.

Without a high credit score, it is difficult to qualify for a mortgage, auto loan and having a low credit score can even jeopardize your chances of being hired. Even if you do qualify for a loan, you’ll be paying a much higher interest rate than someone with a high credit score, thus costing you more money.

July 15, 2010