According to recent data, the national average credit score has reached an all-time high of 700 this spring, while the amount of highest-risk borrowers sunk to a record low—which bodes well for both lenders and borrowers.
In fact, more and more, of some the worst personal financial setbacks – bankruptcies and foreclosures – are falling off of people’s credit reports. The recovery since the recession and housing meltdown will lead to an estimated six million Americans seeing personal bankruptcies disappear over the next five years.
Not only that, but the amount of borrowers with subprime credit scores below 600 fell to a new low of about 40 million – or about 20 percent of U.S. adults who have FICO scores. This is down from 2010 when it peaked at 25.5 percent of consumers.
Part of what has lead scores to improve over the past nine years has been an increase in wariness on the part of the consumer. More Americans have been saving at home and spending sparingly. This has lead to increased confidence because, in most cases, no one knows better than you how to handle your money.
However, we’re not out of the woods. While our credit scores are higher than they’ve ever been, some of our debts have risen higher than ever as well. For instance, student loan and credit card debt are each at all-time highs of over $1 trillion. Combined with auto loans, these debts represent what has kept many young people in America from purchasing mortgages and stepping into the world of home ownership.
So where do these two things intersect? How can Americans be more confident and better-situated, but also be pushing our debts to new, feared heights?
The answer is that higher credit scores are one of the factors that lead to more available credit. With more available credit comes more borrowing, and with more responsible repayment comes more available credit. Coupled with a daily increase in borrowers, that provides for a healthy economy.
But interest rates can take debt repayment and turn it into the rather thankless paying into a company in which you have no share. If you’re still paying a high interest rate for multiple loans, you should consider refinancing. If you’re considering refinancing your student loans, you should consider Purefy.
With Purefy, you can refinance all federal, private, and direct PLUS loans into one monthly payment, then get a plan that suits your needs, with a rate that fits your budget. Borrowers with Purefy are saving thousands, we have lowered customers’ interest rates by an average of 2.12%*. There are no fees – no pre-payment penalties, origination, or application fees – and the application process is quick and easy. Just answer 5 simple questions to check your rate – before a credit check or applying.
After you’ve found your rate, you’ll be able to review rates, discounts, and your new monthly payment – all suited to your specific situation. You’ll be able to do all of this in less than 60 seconds and apply in less than 15 minutes.
Purefy is on a mission to help others discover what options they have available when dealing with student loans. We offer free consultations for specific student loan situations via phone at 202-524-1115, or email firstname.lastname@example.org and are always happy to help you find the best solution for you.