Rising Credit Scores Mask Growing Household Debt Crisis

Despite households falling deeper into debt, credit scores in the US have reached an all-time high. Consumers have taken on more debt, resulting in increased credit card balances and missed payments. However, delinquency rates remain low, thanks to a strong labor market and cooling inflation. The removal of certain medical collections data from consumer credit files has also contributed to the rise in credit scores. Nevertheless, experts warn that the possibility of a recession, rising unemployment, the resumption of student loan payments, and elevated gas prices could negatively impact credit scores in the future. A good credit score is generally considered to be above 670, while scores over 740 are considered very good, and anything above 800 is exceptional.