Number of the Day Shows Record High Average Credit Score
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That’s how high the average FICO credit score has gotten—a record since FICO started tracking it in 2005, despite the pandemic economy.
While higher credit scores may seem counterintuitive given the struggles many Americans have had since COVID-19 rocked the economy, stimulus spending and lender accommodations appear to have helped many people avoid falling behind on credit payments, partly because if they miss payments because of forbearance or deferment agreements, it doesn’t negatively impact credit their scores, FICO analyst Ethan Dornhelm said in a blog post Monday. Plus, consumer debt has fallen due to reigned in spending (or limited options,) benefitting the scoring metrics involving amounts owed.
FICO’s scores, which range from 300 to 850, are the most widely used by lenders. The 711 is its latest average, as of July. While the average has risen steadily over the past decade (it was as low as 686 in 2009, during the last recession,) the future trajectory will depend on the nature of the economic recovery and whether there will be continued government and private sector financial support, Dornhelm said.
FICO/blog. "Average U.S. FICO Score at 711, But Uncertainty Abounds." Accessed Oct. 19, 2020.