: American credit scores continued to climb even without stimulus checks — here’s why

Americans’ average credit scores are the highest they’ve been in over a decade, according to Experian
EXPN,
-0.61%.
Generally speaking, a Vantage score above 670 is considered good.

During earlier phases of the pandemic, Americans improved their credit scores by paying off credit-card debts with stimulus funds they saved and by cutting down spending, naturally, while much of the economy was closed to curb the spread of COVID-19.

The student-loan repayment pause and the eviction moratorium also helped free up some cash to pay off pre-existing debts, which in turn boosted many Americans’ credit scores.

The U.S. Department of Education announced last month that the student-loan repayment pause will end in January of 2022. While the federal eviction ban is set to expire next month, though some states including New York and California have pushed the expiration date further.

In the meantime, Americans are continuing to decrease their credit-card balances and non-mortgage debt using stimulus funds they saved.

In the second quarter of 2020, Americans’ average credit-card balances were $5,897, but they now hover at $5,525. While nonmortgage debt declined from $25,483 to $25,112.

Experian’s credit report “showcases the resiliency of American households,” said Joseph Mayans, principal economist at Advantage Economics LLC, a Salt Lake City-based economic analytics firm, in a statement published by Experian.

“People used their stimulus dollars to stay on top of their bills and pay down debt, which boosted average credit scores across all generations,” he added. Overall the report “shows the overwhelming success of the fiscal support packages.”