What are Americans doing with all that money?

The credit bureau has reported that during the period of third quarter of 2008 and the first quarter of 2009 average TransUnion credit score has dropped 6 points to 65, as more consumers are trading off their credit scores to pay bills. 

Ezra Becker, a director in TransUnion's financial services group, stated she didn’t expect credit scores to improve. Nonetheless, they could drop further throughout the second quarter of 2010, she said.

One of the reasons why credit scores are being dragged down is because of rising unemployment causing consumers inability to pay their bills. The record high of 6.5% was reached in credit card delinquencies in the first quarter of 2009, while charge-offs reached 7.5%, shows the Federal Reserve. Consequently, banks are closing a record number of credit card accounts and reducing credit lines, making scores in determining who gets a loan and at what rate more important.