Report: Consumer credit on the mend

While the economy may still be in a funk and the unemployment rate remains elevated, a new report from Equifax suggests consumer credit is improving.

"Despite concerns of the economy relapsing, several current metrics indicate the credit cycle is stabilizing," said Michael Koukounas, senior vice president of client services for Equifax. "[It's] even growing somewhat as consumer payment behavior improves."

According to the monthly report, which was issued July 1, consumers' credit scores rose in the month of May to 695, while the number of credit reports labeled as "high risk" dropped, indicating more people are paying off their debts.

Speaking of debt, total consumer debt remains high, but at $11.3 trillion, it's down nearly 9 percent compared to October 2008, when it peaked at $12.4 trillion.

The report also indicates credit companies are approving more loans, as auto and home equity loan originations increased 12 percent and 6.6 percent, respectively, compared to March 2010.

Consumers who are still on the credit bubble despite positive payment behavior may be able to get a quick credit fix by thoroughly reviewing their credit reports. By looking over their credit account information, they may be able to spot and resolve any problematic or questionable items that are unfairly keeping their credit scores low.