For the first time in a decade, average credit scores have decreased slightly to 717, according to data released by FICO. This decline is likely due to high interest rates and inflation that are causing consumers to miss more payments and take on higher levels of debt.
For the first time in a decade, average credit scores have decreased slightly to 717, according to data released by FICO. In 2023, average scores sat at 718. This decline is likely due to high interest rates and inflation that are causing consumers to miss more payments and take on higher levels of debt. Since October, more than 18% of Americans have had past-due payments on one or more credit accounts. Compared to April 2023, this is up by 4%, FICO reported.
Missed payments on mortgages and auto loans have gone up but are still lower than they were before the pandemic. It’s missed payments on credit cards that have gone up most, and now exceed pre-pandemic levels. "The apparent cumulative impact of higher interest rates, elevated consumer prices and economic uncertainty has put a financial strain especially on those consumers who heavily rely on credit cards to cover everyday expenses," FICO stated in its report. "This can lead to higher credit card utilization and subsequent defaults on credit card payments." One way to get your credit score back up is to consolidate your debt and pay it down quicker. Credible can help you find the loan that’s right for you by showing you several reputable personal loan lenders that offer quick loans. CONSUMER SPENDING AND DEBT ARE UP AS US ECONOMY BEGINS REBOUND State governments are taking action to curb the effect medical debt has on credit score
Credit Scores Debt Interest Rates Inflation Missed Payments Credit Cards Consolidation Loans Consumer Spending US Economy Medical Debt
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