Consumer credit reports are improving as the pains of the Great Recession become a memory of a decade ago. Foreclosures, aging, and writeoff reports are beginning to purge
With almost ten years since the last recession, most Americans have shaken off the bankruptcies and foreclosures that plagued their credit reports for years.
In addition, about six million people will wipe bankruptcies off their financial profiles in five years’ time.
This will help in raising the credit scores and ensuring that consumers have access to affordable loans.
For input/output forms, the network conversion mandates were particularly effective on the issuing side.
In April, the Wall Street Journal announced that current credit scores for the average American consumer stood at 700 points.
This score is the highest ever recorded since the FICO credit scores firm began its quest of gathering and storing the data in 2005.
An average score that is less than 600 took a nose dive to stand at 20% of the population with credit score data.
What to watch for: with score improvements, will there need to be a reranking to adjust all scores back to a risk-based bell curve?
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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