Over the past two months, employees at CareOne Credit (one of the largest debt-counseling outfits in the nation) have noticed a change in the type of person seeking its services. Traditionally, callers are women in their 30s with a family income of $30,000 to $35,000 and a credit score around 550. Now, callers are still generally females in their 30s—the difference is, these women have family incomes a bit above $50,000 and credit scores above 600.
In an article for TIME magazine, Michael Croxson, Care One's president, suggests that this may be the result of tightening credit standards by card issuers. Many callers are people with multiple credit cards who thought their outstanding credit lines could see them through, but are getting notice that their credit lines are being cut—and, without that cushion, they run into trouble.
Source:
TIME magazine: Credit Problems Are Climbing The Income Scale
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