FICO Finds More Consumers Approaching Perfect Scores

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credit cardsThe number of consumers in the top credit score range has reached its highest level since fall 2008, a report by FICO Labs shows, which could indicate more Americans are working to better their personal finances, including improving their credit reports. (If you want to know more about how a credit score works, check out: What's a Credit Score? Really.)

More than 18% of consumers now have FICO scores between 800 and 850-the first time the ratio of consumers has grown to this figure since October 2008, FICO Labs reports.

However, the number of consumers with scores between 700 and 799 hasn't improved in the same manner. The report states 15.5% of U.S. residents have scores in this range, which is the lowest the figure has been since FICO Labs began recording the statistic in 2005.

Additionally, the report found that nearly one-third of the country's consumers have FICO scores between 550 and 699-the most amount of people with a score in this range since 2006.


According to FICO, this data likely denotes there are still a considerable number of Americans in poor or average financial standing.
Despite the fact that many Americans are in evident need of a credit tune-up, Rachel Bell of FICO Labs stated the report indicates a considerable change in consumers' attitudes toward their personal finances.

"Many consumers have moved into the top tier of the FICO Score range by redoubling their efforts to maintain an excellent credit profile," said Bell. "Other people have fallen into lower tiers, most likely due to the financial stress that many households have been feeling. Despite this shift, we continue to observe more than half of FICO Scores in the U.S. are between 700 – 850, which means Americans have managed their credit well despite the economic downturn."

One facet of the report that stands out, according to Bell, is the percentage of consumers with FICO scores in the 300-549 range-nearly 15%. This is the lowest the figure has been since 2006. The reason for the reduced figure, Bell notes, is due to many lenders writing off a substantial amount of bad debt.
"Some consumers who had multiple bad debts and delinquencies a few years ago are now able to move on, and their credit scores are starting to move into the 550-699 range," Bell added.

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harrylindalynen

This is not true 10 years of not one late payment and score actually goes south. the BANKSTERS reap
huge profits. They conspire to keep your score low so they can rape you. Let me give you just one example.
I have made 182 Mortgage payments thats over 14 years and this payment history doesen't even appear
on any of my credit reports. I know what you're thinking, yes I have tried contacting both Bank and Credit
report agency for years, with the outcome lower and lower and lower score with every inquire.
I have given up its impossible to correct.

May 08 2012 at 7:49 PM Report abuse rate up rate down Reply
k4jlp

If it wAS NOT FOR THE CROOKS AT THE BUREAUS KEEPING STUFF ON YOUR REPORT FOR 7 YEARS EVEN AFTER YOU PAY IT, SCORES WOULD BE EVEN HIGHER.....THEIR CUSTOMERS (THE BANKS) WANT IT THAT WAY SO THEY CAN CHARGE YOU HIGHER INTEREST.

May 08 2012 at 6:35 AM Report abuse rate up rate down Reply
ilm9p

You know who else has a perfect credit score? The scum on welfare that's who. What they don't get for free, they steal. Never late with a payment because they never have to make a payment = perfect credit score.

May 07 2012 at 2:27 PM Report abuse -1 rate up rate down Reply
jdykbpl45

Are we better off with Obama, Reid, Pelosi, Geithner, Holder and Bernake? Don't think so!

May 07 2012 at 1:29 PM Report abuse +4 rate up rate down Reply