Photo: Micah Sheldon/Flickr
The national average FICO credit score jumped 10 points above where it was prior to the start of the Great Recession in April. In fact, it is now at an all-time high, according to FICO, the largest provider of software for calculating an individual’s credit score.
The national average credit score reached a record 700 in April, according to FICO. At the start of the economic crisis in October 2006, the national average was 690. It dropped to a low of 686 in the midst of the crisis in October 2009, says FICO data.
FICO attributes the improving credit scores to the stable growth the US economy has seen since the Great Recession, and educating consumers on credit scores.
A score of 700 is considered “very good credit” and consumers are likely to get approved for loans with favorable terms, according to FICO.
Credit scores range from a low of 300 (bad credit) to a high of 850 (excellent credit) — although only one in 10 Americans will achieve a perfect credit score 850, says FICO.
A consumer’s credit score can impact whether or not you will be approved to buy a car, how high or low your credit card interest rates will be, and of course — getting approved for a mortgage.
In the decade since the Great Recession, national average credit scores have been steadily rising. And at the same time, the percentage of consumers scoring low due to high debt to credit ratios and significant lateness has been dropping over the same time period.
The percentage of consumers with latenesses of 90 or more days has decreased from 19.4 percent of the population in October 2013 to 16.5 percent in April 2017. Additionally, serious delinquency dropped 3.5 percent year-over-year in April.
According to FICO data, the percentage of consumers reaching the prime 800 range has gone up consistently since 2010, and in April 2017 the number of consumers scoring above 800 outnumbered those scoring 600 or below.
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