4 Reasons the Average FICO Credit Score Just Set a New Record

The average FICO credit score has hit a new high — for the ninth year in a row.

According to the latest data from Fair Isaac Corp., aka FICO, the national average FICO credit score reached 706 in April. That’s up from 704 last year and from 686 in 2009, when the average score bottomed out.

FICO attributes the continued increase in the national average credit score primarily to consumers improving their credit — and their finances in general — as the economy has improved since the Great Recession officially ended in June 2009.

Ethan Dornhelm, vice president of FICO Scores and Predictive Analytics, explains in a blog post:

“Significant improvement in the overall population’s credit profile has been the key driver of the 20-point increase in national average FICO Score over the past decade. These improvements are reflective of improving consumer financial health, as would be expected during a period of economic expansion.”

Consumers have improved some aspects of their credit a lot more than others over the past decade, however.

FICO reports that it saw the biggest improvements from April 2009 to April 2019 in the following groups:

1. The share of people who have been 90+ days past due on real estate loans in the past two years: Fell from 7.2% to 2.8% — an improvement of 62%.
2. The share of people who have been 90+ days past due on bank cards in the past two years: Fell from 12.9% to 8.6% — an improvement of 33%.
3. The average credit card utilization rate: Fell from 46.4% to 33.5% — an improvement of 28%.
4. The share of people who have been 30+ days past due in the past year: Fell from 25.2% to 19.7% — an improvement of 22%.

Checking your credit score

The first step in improving your own credit score is knowing where it stands. If you haven’t checked your score recently, consider doing so.

To learn about how you can get one for free, check out “6 Companies That Give Free Credit Scores to the General Public.” Or, ask your credit card company or bank if it offers free scores to customers.

While you’re at it, pull your credit reports from the three major nationwide credit reporting companies, too. Credit reports do not include credit scores, but they contain data that influence scores. So, your credit reports will give you insight into your credit score — and how you can improve it.

We walk you through the process of getting your credit reports in “How to Get Your Free Credit Report in 6 Easy Steps.”

So, how does your credit score measure up to the national average? Share with us by commenting below or over on our Facebook page.