The average FICO® credit score in the United States reached a record high of 711 in 2020, despite the financial challenges of the pandemic. In fact — contrary to what might be expected — consumer debt management improved after January 2020, with shrinking debt, decreased use of credit, and a drop in late payments.1
This may reflect more cautious spending by consumers in the face of a struggling economy, as well as support from government stimulus. Even so, credit scores have been steadily increasing for the last decade.2
An Important Number
Your credit score can influence loan approvals and terms for a variety of financial transactions, not only for major purchases such as a home or car but also for credit cards, insurance premiums, and home rentals. It may even affect a job application.