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GAUGING
CREDIT
SCORES AND
MORTGAGE
DEBT
Americans are experiencing higher levels
of consumer confidence alongside increased
credit balances, and a recent report takes a
look at how credit and debt have shifted since
the 2008 financial crisis.
"We're continuing to see the positive
effects of economic recovery, especially
among younger consumers," said Michele
Raneri, VP of Analytics and Business
Development at Experian. "Since the
recession, responsible credit card behaviors
and lower debt among younger consumers
is driving an upward trend in average credit
scores across the nation. Over the last 10
years, those 18 to 21 increased their credit
scores by 23 points on average compared to
those 18 to 21 10 years ago."
According to the report, the average
mortgage debt increased from $191,357 in 2008
to $208,180 in 2018. However, delinquency
rates dropped within that time. In the ten
years since the financial crisis, average 30
days past-due delinquency rates dropped
from 5.4% to 3.9%. Additionally, average 60
days past-due delinquency rates dropped
from 2.9% to 1.9% in that time, and average
90 days or more past-due delinquency rates
dropped from 7.1% to 6.7%.
Older Americans, aged 72 and up, saw the
largest increase in mortgage debt, up $29,602
for a total of $160,735 in 2018 since 2008.
Younger age groups saw smaller increases in
mortgage debts, with consumers aged 22 to 35
increasing their average mortgage debt from
$192,554 in 2008 to $209,713 in 2018.
Year-over-year, 2018 saw the biggest
increase in credit since the financial
downturn, even though credit scores are
still lower than they were before the crisis.
Overall, the nation's average credit score is
680, five points higher than the 2017 average
of 675.
"With this annual report, our goal is to
provide insights that help consumers make
more informed decisions about credit use to
change their financial habits and improve
financial access," said Rod Griffin, Director
of Consumer Education and Awareness at
Experian. "Understanding the factors that
influence their overall credit profile can help
consumers lead financially empowered lives."
