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Credit Scores at All Time High- And Consumer Debt is Rising
Credit Scores at All Time High
The average American’s credit score reached 700 in April, an all-time high. It’s never been higher, but consumer debt level is rising. Then what is going on?
A CNN Money post on June 20, 2017 by Anna Bahney titled “Americans: Your Credit Score is Going Up“, stated: “The average FICO credit score has hit a new milestone: 700. That’s considered “good” credit — and it’s the highest average score since FICO began tracking 12 years ago. Your credit score, which evaluates your credit worthiness on a scale of 300 (poor credit) to 850 (excellent credit), is a primary indicator for lenders evaluating how much credit to extend to you and on what terms.”
Why Are Credit Scores Up?
According to a U.S. News & World Report article from May 30, 2017, “America’s Shifting Debt Dilemma” by author Andrew Soergel, “Scores have been bolstered in part by years of consumer wariness after the housing bubble collapsed and the U.S. plunged into the Great Recession. Those burned by the recession were more reluctant to take on significant levels of personal debt, and many opted instead to pay off existing debts and play a waiting game until conditions got better, pushing savings higher.”
Consumer Debt Level Increasing
In the Federal Reserve Bank of New York’s May 17, 2017 Quarterly Report on Household Debt and Credit, they reported that total household debt reached $12.73 trillion in the first quarter of 2017. As a result it finally surpassed the $12.68 trillion peak reached during the recession in 2008.
“Almost nine years later, household debt has finally exceeded its 2008 peak but the debt and its borrowers look quite different today. ”
U.S. News & World Report’s Soergel described part of the change, noting, “Consumers’ debt portfolios simply look different than they did 10 years ago, as mortgage obligations have taken a backseat for many while student, auto and credit card loans have soared.”
Summarizing the current situation, Soergel wrote: “The average American’s credit score has never been higher, but rising levels of consumer debt have some analysts worried a bubble is forming.”
What About You?
Is your debt level going up? Is your credit score up as well? Borrowing is more affordable with a better credit score, and your existing debt less costly. Can your credit score use a boost?
Mid Oregon can help. Talk to one of our loan officers to get some tips, and find out how doing a few key things can make a big difference.
But first, take a look at our post, “Boost Your Credit Score? Ten Things You Can Do To Improve”, to learn more.
Ignore These 4 Travel Myths
Traveling This Summer? Ignore the 4 Travel Myths
If you’re planning a road trip this summer, ignore these 4 travel myths as your finalize your travel details.
Myth 1: The day before Thanksgiving is the busiest day for travel.
Nope, according to USA Today, the busiest travel days generally occur during the summer, the exact date changing from year to year. According to the Department of Transportation, the busiest day in 2014 was Aug. 8. But the big holidays, such as 4th of July and Labor Day, tend to see a spike in travel, so you can assume the road and airports will be busy.
Remember, this year the eclipse will be a major event in Central Oregon, so consider planning your vacation to somewhere not impacted by the eclipse. It might be less busy, easier to move around and get lodging, and possibly even less expensive.
Myth 2: The best airfare deals are available on Tuesdays
According to a 2014 study by the Airlines Reporting Corporation, Sundays 50 to 100 days before your departure date are the best time to buy coach tickets, costing on average $110 less than the overall average ticket price.
Myth 3: “Staycations” are always less expensive
If you’re flying, it’s not always cheaper to stick close to home–especially if you’re not flying from a major hub city to another hub city. Check airline prices online, and you might be surprised that greater distances don’t always correlate with a greater price.
Myth 4: Nothing is ever free
If you’re travelling to a tourist destination, there are always freebies available–particularly for kids. A simple Google search can save you money. There are often coupon books available which are usually distributed to locals, too.
When you are ready to travel…
Remember to let Mid Oregon know about your vacation plans. You debit or credit card transactions in that far away place won’t be questioned. If you use our CardNav℠ mobile debit card technology, be sure you adjust any geographic use restrictions for your destinations.
Our Summer Skip-A-Pay program for many of our loans might also be available to give you a little extra cash for that great vacation. For more details, and to participate in Skip-a-Payment, get started here.
Protecting Our Seniors on World Elder Abuse Awareness Day
From a LinkedIn editorial published on 5/15/16.
By Jim Nussle, President & CEO at America’s Credit Unions; CUNA Credit Union National Association
Protecting Our Seniors on World Elder Abuse Awareness Day
Today advocates from around the globe will meet in Washington, DC for the third Global Summit on World Elder Abuse Awareness Day. Elder abuse, including financial exploitation, is such a global problem that June 15 has been named World Elder Abuse Awareness Day by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations since 2006. It is unfortunate that we need such a day but inspiring that there are so many willing to advocate with, and on behalf of seniors who may vulnerable to abuse.
Serving Seniors in Their Communities is an Important Part of the Mission of Credit Unions
America’s credit unions are dedicated to meeting the financial needs of all consumers, and serving the seniors in their communities is an important part of their mission.* At today’s summit, staff from North Carolina’s State Employees Credit Union will be on the agenda to discuss financial abuse issues plaguing older adults and the legislation that could address the issues affecting our seniors. I applaud State Employees Credit Union for dedicating their time to advocate on this important matter.
Regrettably, there are people who take advantage of the elderly, which is why it is important for all of us to make sure we are doing everything we can to identify and address elder abuse whether it happens online, over the phone, in person by fraudsters, or even by trusted individuals such as caretakers or family members.
Credit union employees, like those at State Employees Credit Union, often know the senior members they serve in their local community personally and can be an invaluable resource in planning for all the joys, as well as the challenges, associated with growing older.
More That Can Be Done
While credit unions can serve as the first line of defense in recognizing the signs and signals associated with this abuse, on the Federal level there’s more that could be done to enhance their ability to notify the proper authorities. The Senior$afe Act (S. 223), introduced by Senators Susan Collins (R-ME) and Claire McCaskill (D-MO), would be an important step toward improving the ability of credit unions to protect seniors from unscrupulous activity by providing legal immunity for properly trained financial services employees who disclose concerns about potential financial exploitation of senior citizens.
This common-sense legislation would allow for enhanced safety measures for some of our most vulnerable citizens and would be instrumental in providing even more opportunity for credit unions and other financial institutions to protect our nation’s seniors. CUNA strongly supports this legislation and is actively working with its supporters in Congress to secure its enactment.
* On Thursday, June 22, Mid Oregon Credit Union will be presenting a free workshop, “How to Avoid Scams that Target Seniors”, at our East Bend branch at 1386 NE Cushing Drive. Sgt. Dan Ritchie, City of Bend Police Department, Cyber Crime Recognition and Prevention Program will be the presenter.