The average FICO score reached an all-time high, hitting 700 for the first time ever. And scores are expected to continue climbing even as mortgage lenders prepare to ease credit standards over the next few months.
Average credit scores bottomed out at 686 during the housing crisis after a sharp increase in foreclosures, FICO vice president for scores and analytics Ethan Dornhelm explained, according to an article by Jessica Dickler for CNBC. FICO scores range from 300 to 850.
A new report from the Urban Institute showed the average FICO score for originations dropped in April as lenders eased lending standards for refinances. For purchases, however, the standards remained tight.