FICO Score

There’s good news for the legions of Americans who work hard to pay their bills on time and keep their financial world in order – the average FICO credit score has now reached 700.

That’s a considerable jump from the lower average scores experienced in the days after the 2008 financial meltdown and the economically challenged days to follow, and suggests Americans are doing more to maintain better credit histories.

Credit scores, generated by America’s three major credit bureaus and assessed by the Fair Isaac Corportation – the originator of America’s credit rating standards and the industry-wide FICO scoring system – exist in a range from excellent credit (850 points) to poor credit (300).

A Higher Benchmark

The 700 mark represents a significant milestone for American credit averages, pushing more and more people into a range where they’ll be able to enjoy better interest rates, improved credit card offering or face less hassles when trying to finance a home or buy a new car.

Over the past decade-plus, FICO scores have been on the rise, with average scores falling in the lower end of FICO’s “good” credit category, stretching from 670 to 739.

Back in October of 2005, an average of 688 was common, but the rise and fall of the American economy during the dark days of the Great Recession caused a significant impact on score averages.

Since October of 2013, however, average scores have been on the increase, at which point they reached 690.

The new 700-point average suggests to financial experts and analysts that many years of financial growth and a general improvement in the economy during the last administration is beginning to show benefits across the board.

Rising home prices, better unemployment numbers and a stronger economy are all factors that weigh into the numbers. But it may also be a sign that more Americans are paying attention to their personal credit issues, thinking twice before financially overextending themselves, and keeping up on credit-building basics such as paying their bills on time and maintaining healthy balances on those cards they do keep in circulation.

A Good Club to Join

And with the higher the average number for the masses, the more folks there are who are slowly migrating to FICO’s even better category, “very good” credit, which begins at 740. The general move to improvement is also producing many more people in the 800-plus club, those with exceptionally good credit, and shrinking the ranks of those whose credit scores come in at 600 or lower.

All of which bodes well for those who have seen (or desire) the spin-off effects of better credit, such as lower interest rates on their cards and the ability to more easily be approved for major life purchases, such as a home or a new car.

Now that you seen how high the average credit score is and you’d like some help to dispute a credit report, we can offer some help.

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