The credit score is not just a tool for determining whether someone can secure a loan or credit card; it plays a broader and more critical role in the U.S. economy. By influencing  consumer and investment decisions, the credit system directly impacts economic growth, inflation, and even employment policies.

The average credit score in the U.S. is around 716, according to 2023 data. This number reflects the recovery of the American economy after the challenges posed by the COVID  19 pandemic, when many citizens faced financial difficulties due to unemployment and rising debt. A lower score limits access to loans, forcing many families to resort to high cost financing, further worsening their financial situation.

From a macroeconomic perspective, increased credit accessibility, facilitated by higher credit scores, can boost consumption. When more citizens have access to favorable credit lines, they spend more on goods and services, thus stimulating the economy. However, there are also associated risks: excessive credit can lead to economic bubbles, as seen in the 2008 housing crisis when millions of Americans with low credit scores took out mortgages, they could not afford long-term.

In summary, the credit score is a powerful tool not only at the individual level but also at the collective level, influencing the overall health of the economy. U.S. government policies often focus on improving credit access and promoting financial education to stabilize the economy.