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
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With almost ten years since the last recession, most Americans have shaken off the bankruptcies and foreclosures that plagued their credit reports for years.
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In addition, about six million people will wipe bankruptcies off their financial profiles in five years’ time.
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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.
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In April, the Wall Street Journal announced that current credit scores for the average American consumer stood at 700 points.
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This score is the highest ever recorded since the FICO credit scores firm began its quest of gathering and storing the data in 2005.
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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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