NEW YORK—Even though millions of Americans have lost their jobs and income as a result of the coronavirus pandemic in 2020, with many skipping debt payments, consumer credit scores have actually increased.
The average FICO credit score stood at 711 in July, up from 708 in April and 706 a year earlier, The Wall Street Journal reported.
“The increase is largely thanks to the unprecedented financial assistance the government and lenders rolled out to consumers after the pandemic took hold in the U.S. Stimulus payments and expanded unemployment benefits helped many borrowers keep up with their bills and, in some cases, even pay down their debt. Widespread payment holidays on mortgages, auto loans and student loans freed up funds and kept credit reports clean,” The Journal said.