Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Products » Credit Score Numbers Reach Four-Year Peak

Credit Score Numbers Reach Four-Year Peak

By
Add to Favorites:
Credit Score Numbers Reach Four-Year Peak

The average credit score for U.S. consumers rose to a four-year high of 696 in May, according to Equifax, one of the three primary U.S. credit bureaus. This is the highest the average credit score has been since 2007, right before the nation fell into a severe economic recession from which it is still struggling to recover. Some of the reasons for the rise in the average credit score is the decline in debt to income ratios and the decline in delinquencies. Credit card delinquencies have dropped as much as 30% in a two-year period, according to the Federal Reserve.

Boost in Consumer Spending

Aquarterly Federal Reserve survey released in May, also showed a pick-up in demand for auto loans in the second quarter of 2011. In the first quarter of the year, loan officers saw an overall increase in consumer lending, which, according to the Fed, is the first increase since 2005.

Commenting on the improvement in consumer scores and household liquidity, James Paulsen, the chief investment strategist for Wells Capital Management, said, “The financial situation of the household sector has improved far faster and far more than everyone thought it would two years ago. There has been a change that is sustainable and durable.” The ratio of consumer debt payments to income is the lowest since 1994, according to Fed data.

Decrease in Consumer Debt

While consumers are taking on new debt, such as auto loans, they are still working very hard to reduce overall debt and specific debt, such as credit card debt. According to the Federal Reserve Bank of New York, the 10 consecutive quarters ending in March 2011, marked a reduction in consumer debt of more than $1 trillion.

Economist Stephen Roach, non-executive chairman of Morgan Stanley Asia, believes consumers will continue to cut debt “a minimum of another three to five years.” Despite the fact that households are increasing their savings and monitoring their debt obligations, debt is still high.

Add to Favorites:

Related News:

USAA Digital Wallet Gets an Upgrade

By Dar Dowling, Posted: December 5, 2016

USAA has upped the ante with their digital wallet, making it a bit more like an everyday wallet by adding in six additional features, so people can now include everything from their automobile information to insurance cards in their ... Continue reading
Global Fraud On Hackers To-Do List This Season

By Dar Dowling, Posted: December 2, 2016

With the holiday shopping season upon us, retailers around the world can expect a 12% bump in online fraud when compared with data from the holiday season last year. Continue reading
Chase Pay Launched

By Dar Dowling, Posted: December 1, 2016

Chase Pay, the new digital payment system from Chase, is now open for business. Chase Pay lets people pay for purchases with their credit cards. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit