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Average Credit Score Hits A New High, Despite the Pandemic
February 24, 2021
Despite the coronavirus pandemic, the average FICO credit score hit a new high of 711 in the U.S. last year.
It may seem counterintuitive that credit scores would climb during a period when millions were out of work and struggling to keep up with their bills. The head of research and analytics for FICO told CNBC that this should not come as a surprise. Credit scores are a lagging indicator, and the impact of a recession or major economic event may not appear on credit reports for some time. For instance, during the Great Recession, credit scores did not hit their low point until late 2009, well after the crisis began.
Since bottoming out in 2009, the average score has been steadily climbing for the past decade. While we may not know the impact of the pandemic on credit scores for some time, experts feel that the early response from the government, such as implementing forbearance programs and enhanced unemployment, may mean we will avoid a major drop in the average score.
