American Credit Scores Hit a Record High

Almost a decade after the average FICO score hit a low of 686 in the aftermath of the Great Recession, the number is at its highest point ever, 704. The new record marks an eight-year streak of increases, trailing America’s recovery from its financial near-death experience.

Fueling the rise is the fact that fewer consumers have truly horrible scores (less than 550) that could drag the average down. In the last year, the percentage of Americans with one or more collection accounts on their file has fallen to 23 percent, from 25.8 percent. Since payment history makes up 35 percent of a FICO score, the drop in delinquencies has more people moving up into the 650-to-699 range.