When it comes to credit, Americans are faring better than ever.

For the first time, the average national credit score has reached 700, according to FICO, developer of one of the most commonly used scores by lenders. FICO scores range from 300 to 850.

Your credit score plays a big role in daily life. It can determine the interest rate a consumer is going to pay for credit cards, car loans and mortgages — or whether they will get a loan at all.

Average credit scores most recently bottomed out at 686, during the housing crisis when there was a sharp increase in foreclosures. They have steadily ticked higher since then, according to Ethan Dornhelm, vice president for scores and analytics at FICO. Now scores are at an all-time high.

A score of 700 is considered "very good credit," Dornhelm said. "Consumers will likely qualify for the credit they want at favorable terms."

On the other hand, credit card balances and delinquencies are also steadily creeping higher.

"That is something we will be monitoring," Dornhelm said.