January 2024 U.S. National Consumer Credit Trends Reports (2024)

FAQs

What is the most common consumer credit score? ›

Revolving credit

Revolving credit is the most common type of consumer credit.

A soft credit inquiry, also called a soft credit check or soft pull, is usually done by you or another authorized person, like an employer. Soft credit inquiries don't affect your credit score because you're not actually applying for credit, and these types of inquiries don't necessarily require your permission.

The Consumer Credit Act (CCA) is a key piece of legislation that was introduced in 1974 to give consumers more protection. The CCA covers different types of credit agreements, including credit cards, personal loans and hire purchase.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

What is Section 75? It's part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.

What is section 75 on a credit card? ›

Section 75 is an important UK consumer protection law made in the 1970s that means your credit provider must take the same responsibility as the retailer if things go wrong with a purchase.

Voluntary termination (sections 99/100 CCA 1974): consumers have the option to terminate a Hire-Purchase (HP) or Conditional Sale (CS) agreement and only be liable for up to 50 percent of the total amount of the payments and any arrears.

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. A score of 750 puts you in a strong position. Roughly 48% of Americans had a score of 750 or above as of April 2023, according to credit scoring company FICO.

The three major credit bureaus are Equifax®, Experian® and TransUnion®. Credit bureaus are different from credit-scoring companies, such as VantageScore® and FICO®. Credit reports contain information about people's identity, credit history and credit activity as well as information from public records.