Credit scores have increased during the pandemic, and CUNA Senior Economist Jordan van Rijn spoke to The Simple Dollar  to explain why. The average FICO credit score hit a record high of 711 in July.

The article notes that paying bills accounts for 35% of the overall score, and van Rijn highlights ways credit unions are “working with consumers to avoid delinquencies, such as by offering skip-pays, loan modifications, deferments, forbearances, and other means to allow consumers to avoid negative impacts to their credit scores.”

He cited CUNA research that shows nearly 95% of credit unions are offering loan modifications, which helps avoid both delinquencies and charge-offs, but also frees up cash flow to pay down debt.

But van Rijn says the current spike in credit scores is unlikely to last, though a government stimulus package would prolong things. The longer Americans wait for relief, the more damage their credit scores will take, he said.