The average FICO score in the U.S. has seen a slight decline, dropping from 718 to 717 as of October 2023. This change, though seemingly minor, is significant given the vast number of consumers it represents—over 200 million. Factors contributing to this decrease include a 4% increase in delinquencies and a rise in credit card utilization to 35%. These indicators suggest a heightened credit risk among U.S. consumers. Additionally, the report touches upon the historical context of average scores, which have been somewhat inflated since 2017 due to the removal of certain negative credit report elements like tax liens, civil judgments, and medical collections. This alteration in reporting standards has made past improvements in average scores partially artificial, providing a skewed view of consumer credit health.
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