Credit scores hit an all-time high even though households are falling deeper in debt
Even with credit card debt at an all-time high, the national average credit score has never been better, according to FICO.
FICO is a score that's widely used by banks. Credit experts advise borrowers to keep their utilization rate low. This is the ratio of total debt to credit. Limit the impact of high balances.
Ted Rossman is a senior industry analyst for Bankrate. He said that delinquency levels are still low compared to historical norms. Dornhelm stated that "FICO scores do not lead, but lag behind." When it comes to getting loans. A good score is generally above 670. A very good score is above 740. Anything above 800 is considered to be exceptional.
The average nationwide credit score plummeted to 686 in the wake of the housing crisis, more than a ten-year period ago. At that time, there was an increase in foreclosures. The scores steadily increased until the Covid-19 pandemic when government stimulus programs, along with a surge in household savings, helped them reach a historic high.