The average FICO score for U.S. consumers is now 706, according to new data from the credit scoring firm.
It’s a significant jump from the average low of 686 in October 2009. But consumers scores have been increasing since 2009, thanks in part to a healthy economy that has featured steady growth since the Great Recession.
In a Sept. 10 blog post, FICO vice president of scores Ethan Dornhelm said key drivers of the trend include greater consumer awareness regarding FICO scores and negative credit data being removed from consumers’ files. Credit missteps such as missed payments that occurred during the Great Recession have largely fallen off consumers’ credit reports, he noted.
Meanwhile, the three major credit bureaus – Equifax, Experian and TransUnion – have in recent years removed negative items such as civil judgments and tax liens from consumers’ credit reports under new reporting standards.
And Fed data show consumers in lower-scoring ranges may have also benefited from the removal of many collection items from credit reports under the new rules….Read more>>