Data released by Elevate’s Center for the New Middle Class points to several factors which can affect the financial health of non-prime Americans defined as those with sub-700 credit scores.
- One in three experienced an income change of at least 25 percent in the last year
- More than half report some month-to-month income volatility in the last year
- They are 20 percent more likely to have three or more people in their household
- They are twice as likely to have elderly parents living with them
- They are more than twice as likely to be focused on short-term financial matters than long-term ones
- One in three say they are worse off than they were in childhood
“Nonprime Americans are now the majority, with 160 million people living in households with credit scores below 700 and only 150 million living in prime households,” executive director of Elevate’s Center for the New Middle Class Jonathan Walker said.
“They are savvy but credit challenged, and macroeconomic factors such as income fluctuations may be more of a reflection of their day-to-day situation rather than their fiscal responsibility.
“It’s important that policymakers, consumer advocates, media, academics, and the public at large understand this group of consumers to help determine what will best serve their needs.”