When you think about the last few years, what do you suppose happened to credit scores? You might imagine that credit scores have fallen overall, driven by hard economic times and record foreclosures.
It turns out that the average credit score is about the same as it was in 2007 (before things really got ugly). Scores certainly took a dip around 2008, but they've since recovered. However, average scores may not tell the whole story.
SmartMoney.com reports that the average is just a statistic and it only tells part of the story about credit scores. What it doesn't tell us is where scores have moved away from the average (if some of them move up while others move down, the average may remain unchanged). Some experts even suggest that the FICO credis score isn't accounting for everything that happened, and that it may not be the best predictor of future behavior. Indeed, some lenders have raised the minimum credit score required to get a loan.
All this means that it's just as important as ever to watch your credit. If lenders require better credit, you've got to keep your scores as high as possible. Check your credit reports, pay your bills, and work with your lenders if you run into hard times.
[via Consumerist]
Further reading:
- Should You Refinance?
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