Credit Scores Are On The Rise
A decade ago finances were in dire straits as the country was plunged into a recession. How have we fared since then? Probably better than you think.
According to the ‘State of Credit’ report published by Experian credit scores have been steadily bouncing back since 2008 but have not yet returned to their pre-2008 high. The average credit score for Americans was reported at 680 - up from 675 the previous year but not quite back to the 685 average before the recession.
For the most part the rest of the trends hold firm - older people tend to have the highest scores and younger people tend to have the lowest. The biggest gains however are seen in those 18-21 with the average score jumping up 23 points since 2008 bringing the overall average up with it.
Credit utilization overall did not get better or worse for most staying at 30 percent from the previous year.
Experian also found that consumers generally have fewer credit cards on average than they did 10 years ago. The data shows that the average person has three credit cards with a balance of $6,506 and 2.6 retails credit cards with an average balance of $1,901.
To read the full report head on over to the Experian website.
What does this mean for you? This means that the financial market is healthy and people are turning their credit around. If your score has not improved in the last ten years, or has gotten worse, there are many reasons for that and many things you can do to fix it.
A few ways to get started now on your own is to make on-time payments and use your credit cards as sparingly as possible. The more you use the worse your credit utilization ratio and the more interest you will accumulate.
Fixing your credit can be as simple as making a call! We're here to help you rebuild and understand your credit. Give us a call to get started or learn more about what we can do for you 1-800-431-0449.