The Federal Reserve Bank of New York's Household Debt and Credit Report for the second quarter shows consumer creditworthiness improved slightly nationwide, as balances of most loans decreased and credit card limits increased.
According to the report, mortgage and home equity lines both declined by $20 billion during the quarter, while credit card limits rose by $60 billion, or 2 percent. Also, from the same period in 2010, the number of open credit card accounts hiked by 10 million to a total of 289 million, the report shows.
"Outstanding consumer debt remained essentially flat, down just $50 billion, in what was basically a repeat of the previous quarter. This is more evidence that the pace of consumer de-leveraging that began in late 2008 has slowed," said Andrew Haughwout, vice president in the Research and Statistics Group for the Fed.
He added the Fed will gain a clearer understanding of whether this improvement in consumer debt is permanent or temporary.
Despite the positive data, many consumers may still need help repairing their scores. To help them determine whether there are mistakes on their credit reports, consumers may consider speaking with a credit repair company.