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Credit scores hit an all-time high, despite rising debt

Personal Finance Tips 2023: Improving your credit score

Credit scores rose as consumers took on more debt

Still, delinquency rates are low by historical standards, said Ted Rossman, senior industry analyst at Bankrate. “People are working and keeping up with their bills.

“Even if they are not saving more, they are keeping up, for the most part.”

A strong labor market and cooling inflation have helped offset high interest rates and consumer prices, FICO found. So has the removal of certain medical collections data from consumer credit files.

However, “FICO scores are a lagging, not a leading, indicator,” Dornhelm said. The possibility of a recession coupled with rising unemployment could weigh on scores going forward, he added.

Experts also expect the resumption of student loan payments to take a bite out of household budgets, while elevated gas prices and geopolitical tensions are hitting confidence levels.  

What is a ‘good’ credit score?

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