Some good news….It sounds like the average FICO credit score has increased to 704! That’s pretty impressive!
Scores range from 300 to 850 and the majority of all lenders use it to determine an applicant’s ability to repay a loan. During the economic crisis that started in 2007/2008, many borrowers lost their homes, couldn’t pay personal loans and/or student loans. When you default, your credit score suffers so the fact that the average is now above 700, is fantastic!
Are people being more careful about how they use their credit cards? Are they becoming less dependent on credit and using available cash to purchase? Who knows but I hope the trend continues!