The company offers in-depth reviews of the various credit repair services out there, allowing consumers around the world to make informed decisions on who to trust.
New Jersey, USA / April 28, 2021, ZEXPRWIRE, Despite the recent economic struggles caused by the pandemic, the credit score of the average American increased throughout the year of 2020. This is according to data reported by multiple credit score companies, including FICO and VantageScore.
While this has baffled many, some experts point out that this trend shows promising signs about how consumers are managing their credit histories.
Millions of Americans lost their jobs during the pandemic high of April 2020. While these people were either laid off or furloughed from their jobs, as well as losing their employer-based health insurance, as well as skipped debt payments, their credit scores actually rose to record levels.
According to FICO, the developer of one of the most commonly used scores by lenders, the average American credit score during the early months of 2020 was 703. But by October of the same year, the average credit score rose to 711.
VantageScore, another popular credit-scoring service, shows that the average American’s credit score was at 690 in 2020, which is up by 4 points as compared to 2019.
A few reasons for this increase are credited to federal relief resources, as well as a pause or delay on loan payments, specifically student loans and mortgage payments. Expanded unemployment benefits are also seen as some of the reasons behind the increase in credit scores of the average American.
Because of these factors, consumers are seen to be paying down debt and saving more than they have in decades. Many are also seen to leverage low-interest rates to catch up on past-due payments.
In terms of renter credit activity, TransUnion, which is a consumer credit reporting agency, revealed recent data collected by their company as indicating that American renters are surprisingly in good shape given the struggles presented by the pandemic. The said report also reveals that the debt levels of renters and delinquent account levels actually went down in 2020.
TransUnion believes part of this positive data may be due to how renters are reacting to uncertainties of lockdowns. Because of this, renters are being more cautious and more conservative with their finances. Some Americans have also moved into less expensive units than they could qualify for, making it easier for them to pay rent on time and reduce instances of late payments.
Another reason for the increase in credit scores despite high unemployment rates is the fact that pandemic restrictions have prevented consumers from spending on traveling, dining out, and shopping, and other expenses. This helped the Americans who did keep their jobs spend less money and pay back their debts, which contributed to improving the average credit score of the nation.
It also helped that many entrepreneurs decided to start a credit repair company in 2020, giving more consumers the tools needed to manage their credit scores. Of course, more players entering the market also means it is harder to figure out which credit repair companies know what they are doing. This is where CreditRepairReviews.co comes in. The platform tests and collects honest reviews of the various credit repair services in the market, helping consumers figure out which of the available options is best for them.
The combination of stimulus checks, enhanced unemployment benefits, and a pause on debt payments makes this a once-in-a-lifetime opportunity for credit score repairs. Those who haven’t been financially impacted by the pandemic can now reorganize their financial lives and make lasting improvements to their credit scores.
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