Pandemic inflated our credit scores

People who were able to chip away at their debt and boost their credit scores early in the pandemic are now falling behind on payments in greater numbers than expected, The Wall Street Journal reports. This suggests credit scores may be less reliable than they used to be. A TransUnion analysis of more than 75 million credit scores found that delinquency rates for loans or credit cards opened in mid-2021 correspond with what would be expected of borrowers with credit scores 25 points lower.

  • It’s likely that pandemic policies such as increased unemployment benefits, stimulus checks and pauses on federal student loan repayments “artificially boosted” some credit scores. Rather than looking at a number, some lenders are now scrutinizing full credit histories to better assess risk.


By Melissa Cantor, Editor at LinkedIn News

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