It’s all but universally understood that people with low credit scores have a much harder time obtaining credit than those whose credit scores are high. Mortgages these days are all but impossible to be approved for with bad credit given all that has happened in the housing market in recent years. Credit card companies have tightened their standards in terms of those who are offered accounts, and the same holds true for those who are looking to purchase automobiles for the most part. As a result, people with low credit scores are not borrowing in these ways as much as they were a few years ago.
However, based on the data provided in a recent report released by the Federal Reserve Bank of New York, people in the United States with low credit scores have been borrowing quite a bit by way of new student loan debts. A link to the data can be found here, and it contains some potentially troubling information. Several years from now, it’s possible that people all over the United States could be strapped with student loan debt that is a constant weight on their finances, thereby preventing them from raising their credit scores and moving forward in life.