Confidence abounds nationwide as the country moves toward a more balanced economy, with the overall national credit score registering higher in the last year, according to the Experian® State of Credit study.
“If I were to give a grade to the overall picture of credit in the United States, I would give it an A minus,” says Michele Raneri, vice president of analytics and new business development at Experian. “I’m optimistic about the state of credit as we are seeing more loans being extended, late payments are decreasing and consumers are continuing to gain more confidence in originating loans. There definitely is growth and momentum—we’re back to prerecession levels in nearly every category, which means lenders are in a prime position to capitalize on this market and foster business growth.”
Per the study, the national VantageScore® credit score moved up by three points in the last year, from 666 to 669. Instances of late payments, including bank card and retail, decreased by 4.4 percent in the last year and 17.3 percent since the height of the recession in 2010. Average debt is up 2.1 percent to $29,093 per consumer.
“Knowing where you stand from a credit perspective is critical to improving or maintaining your financial well-being. Everyone should understand the value of having positive credit references,” says Rod Griffin, Experian’s director of public education. “Reports like this one provide an avenue to build awareness and help consumers across the nation think about how they can make positive changes in how they manage credit.”
Published with permission from RISMedia.