American Credit Scores Improve Slightly Despite Rising Consumer Debt Levels
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U.S. average FICO credit score has improved to 718, up 2 points from a year ago despite rising consumer debt.
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Consumer debt levels are now higher than pre-pandemic, suggesting an uneven economic recovery ("K-shaped economy").
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Factors offsetting rising debt include slowing inflation, lower unemployment, and changes to medical debt reporting.
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As credit card balances rise, the risk of missing payments also increases.
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Half of cardholders carry debt month-to-month at 20%+ interest rates, making wealth-building difficult.