Americans are grappling with an unprecedented $1.211 trillion in credit card debt, yet their average FICO® Score remains surprisingly stable at 715, according to the Federal Reserve Bank of New York and Experian. This score, while classified as "good," is just shy of the peak of 718 recorded in April 2023. FICO scores, which range from 300 to 850, are crucial for lenders to assess creditworthiness, with factors like payment history, credit utilization, and length of credit history playing significant roles. Despite the financial strain from high debt levels, government stimulus programs and reduced spending during the pandemic have contributed to maintaining these scores. The article also highlights state-specific averages, with Minnesota boasting the highest average FICO score at 742, while Mississippi lags at 680. To improve credit scores, strategies such as paying down revolving debt, increasing credit limits, and checking for errors on credit reports are recommended.
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