The top FICO score ranges from 800 to 850. Since October 2008, this is the highest score. At the helm of the class in credit scores are 18.3% of consumers. It is good news that consumers have started to come out of their darkest days and are working to overcome their troubled credit.
The fact that credit scores are on a rise is indicator good enough that the economy is improving. Consumers are found to work hard to payoff their debts in time. They are also not making crazy purchases with the credit in their hand. Now, consumers are in a better position to borrow money according to various economic measurements. People who have found new jobs are in an advantageous position to payback bills. The payment behavior is gaining in consistency and thus the scores have started to improve.
Old delinquencies have started to become less prominent as payment-making has resumed. Negative items have neared up to the two-year old mark and half of Americans are having FICO scores between 700 and 850. The health of consumers has started to return back to pre-recession levels as 15.5% of them are having score between 700 and 799. It is true that not all consumer credit health have returned to pre-recession levels. But certainly the trend is good and seems to be healthy.
Jobless rate has started to decline. The credit spigot has opened up for businesses and debt load is on a decline. Payment performance also improved. Borrowers have gained a stronger footing. Lenders too are working hard to make more loans.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org