Consumers financed vehicles in the second quarter with better credit scores than were seen a year earlier, Experian said last month.
The credit reporting agency said the average new-vehicle loan in the second quarter went to a consumer with a 732 credit score, up from 729 in the same period of 2020 and the 728 seen in the pre-pandemic second quarter of 2019. The average used-car borrower brought a 665 score to the deal in the second quarter, a 10-point increase from 2020 and a 15-point gain from 2019.
The scores mirrored an overall improvement in American creditworthiness observed by FICO in the second quarter.
On Aug. 17, FICO's Ethan Dornhelm reported that the average American carried a 716 score in April, one of two months for which the analytics provider releases annual data. (October is the other.) This represented an 8-point increase over April 2020 and a 10-point bump from April 2019.
"Though it might sound obvious, the drivers of the continued improvement in the average FICO Score are continued improvements in key metrics considered by the score: fewer missed payments, lower consumer debt levels and reduced credit seeking behavior," Dornhelm, vice president of FICO scores and predictive analytics, wrote in a blog post.