CNBC: Average FICO Credit Score Hits All-Time High

According to a report from CNBC, American credit scores are at an all-time high.

According to FICO, a commonly-used credit scoring service, the average national credit score has reached 700 for the first time. Credit scores range from 300 to 850, and a credit score of 700 is generally considered to be desirable.

Credit scores are used by lenders to assess how much of a credit risk an individual presents to the lending institution. According to CNBC, 700-749 is considered “good credit,” while 650-699 is considered “fair credit.” Anything above 750 is considered “excellent credit.” Credit scores are determined by an individual’s history of paying credit payments on time.

According to FICO’s Vice President for Scores and Analytics, Ethan Dornhelm, a credit score of 700 will allow consumers to “qualify for the credit they want at favorable terms.”

FICO also reports that credit card balances and delinquencies are on the rise. Average credit scores fell as low as 686 during the Great Recession after a dramatic increase in foreclosures.

Tom Ciccotta is a libertarian who writes about economics and higher education for Breitbart News. You can follow him on Twitter @tciccotta or email him at tciccotta@breitbart.com