Average credit scores down from 2007, but leveling off

Credit card company policies that drastically cut people's available credit over the past two years did their damage to credit scores as expected. Credit Karma, in its trend study, reported today that according to its June Credit Score Climate Report the current average U.S. consumer credit score was 674 in May. That's down almost 20 points since 2007 according to Experian's National Score Index. That index showed that during a six month period between January and June of 2007 the average credit score was 692.

As credit card company actions drive credit scores down, banks continue to make it difficult or much more expensive to get credit with scores below 720. In most cases you must have at least 20% to put down on a home to get a mortgage, unless you work with the FHA if your credit score is below 720. Some banks want even higher scores.