According to a report by the credit-rating agency Experian, residents of San Diego County have seen their average credit score drop to an average of 762 to 757 in the last two years, even as their average debt load has increased. For thousands of people seeking credit repair and control over their debt, those two statistics raise eyebrows.

Experian's senior director of analytics, Michele Raneri explains that the average score is down because lenders have cut back on lending, which means that the same amount of debt uses up more of your available credit. How much of your available credit you use is referred to as "utilization."

"Utilization is important because it still reflects how needy a consumer is and potentially shows cash flow problems," she said in an interview with the San Diego Union-Tribune.

The Average San Diegan Owes $24,012 in Non-Mortgage Debt

San Diegans owe, on average, $24,012 in on credit cards, car loans and personal loans, slightly lower than the national average of $24,775. Nevertheless, the average San Diego resident has a credit score of 751 - or a C grade under Experian's model.

Experian uses the VantageScore model to determine credit scores, as do the other to major credit rating agencies, Equifax and TransUnion. Under the VantageScore model, a super-prime A score is one between 901 and 990, B is between 801 and 900, and a C is between 701 and 800.

"Lenders are still lending at C," said Raneri. "We see that in our data." Less fortunate borrowers rate D (601-700) or F (501-600), which the model considers deep subprime. The national average credit score is 749, down six points from two years ago.

People Being More Careful About Debt, But Still Need Help With Credit Score

San Diego-based Privacy Rights Clearinghouse director Beth Givens is encouraged to see people paying more attention to how much credit they can afford in a tight economy. The Privacy Rights Clearinghouse is a nonprofit consumer organization.

"I think people are being a lot more careful about their debt loads these days," she said to the Union-Tribune. "I think it's a sign of the times."

At the same time, she warns consumers interested in credit repair to avoid organizations or websites that charge a fee - to be particularly careful not to get trapped into paying an annual subscription for their services.

The website www.annualcreditreport.com, which was created by Equifax, Experian and TransUnion to comply with Fair and Accurate Credit Transactions Act (FACTA), is the only site Givens recommends, although it only provides free credit reports, not credit scores. Under FACTA, consumers are entitled to their credit scores at a "reasonable fee," although recent legislation proposed in the Senate could require them to be provided for free.

Nevertheless, "it does pay to see what your score is," says Givens. "Especially if you have some time in advance to improve your score."

Related Resource

"San Diegans' credit scores, debt load drop" (San Diego Union-Tribune, May 13, 2010)