Despite some 'deterioration' in how Americans are faring financially, credit scores remain at an all-time high.
Although consumers depend more on credit cards to get by, this hasn't had a significant impact on their financial situation, at least in terms of their credit rating.
According to a new report from FICO, the company that created one of the most commonly used credit scores by lenders.
The average credit score across the country is at an all-time high of 716, unchanged from a year ago. FICO scores range from 300 to 850.
The fact that scores did not rise year over year is a first since the Great Recession.
Scores are still high overall, but they also differ greatly by race and ethnicity.
The average credit card utilization increased from 29.6% in April 2021 to just over 31% in April 2022.
To reduce the impact that high balances can have, credit experts typically advise borrowers to keep revolving debt below 30% of their available credit.
There's no denying that Americans' debt levels have increased as prices have generally increased.
In general, the better off you are in the case of obtaining a loan, the higher your credit score rating.