Despite the dire economic situation for many Americans, credit scores are up.for the metric used in most lending decisions. Stimulus money from the government and relief from the Cares Act resulted in a little extra money to pay down debt and the ability for some to skip payments without damaging their score. A shift in consumer behavior, with some stuck at home spending less, is also contributing to the rise.
“They’re not polluting their credit cards with as much debt right now,” said John Ulzheimer, a credit specialist who formerly worked for Equifax and Fair Isaac Corp. , creator of the widely used score. For many, now is an optimal time to nudge their scores up. While going from a 600 to an 800 might not be realistic in a short period, financial planners say there are some easy ways to push your score in the right direction. A better credit score has many benefits, including the ability to get approved for loans and secure lower interest rates.
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