Continue rising after hitting Great Recession low
Americans are seeing higher credit scores than ever as the average national FICO score reached an all-time high, hitting 700 for the first time ever.
Average credit scores bottomed out at 686 during the housing crisis after a sharp increase in foreclosures, FICO vice president for scores and analytics Ethan Dornhelm explained, according to an article by Jessica Dickler for CNBC. FICO scores range from 300 to 850.
From the article:
A score of 700 is considered “very good credit,” Dornhelm said. “Consumers will likely qualify for the credit they want at favorable terms.”
On the other hand, credit card balances and delinquencies are also steadily creeping higher.
A new report from the Urban Institute showed the average FICO score for originations dropped in April as lenders eased lending standards for refinances. For purchases, however, the standards remained tight.
But while credit standards remain tight for now, a new Fannie Mae survey shows the majority of lenders expect to loosen credit within the next few months.
And even as credit loosens, two major changes could make getting a mortgage easier for millions of Americans and continue boosting FICO scores.