Data from FICO shows credit scores have been on the upswing for a decade, with the average score of 706 in April of 2019 a full 19 points above the average score of 687 in April of 2009.

The FICO data also shows the percentage of consumers with the lowest scores has dropped by a third, with just 11.1% of consumers now stuck with scores of 550 or below, compared with 16% in April of 2009. At the same time, the percentage of Americans with scores of 800 or higher has reached 22.3%, up from 18.2% a decade ago.

Why?

Improving financial health

The economy in 2019 is undeniably better than it was in 2009 in the aftermath of the financial crisis. The improvement in economic conditions is a big reason why credit scores have gone up across the board.

Increased awareness surrounding credit scores

Scores are not rising just because people happen to be doing better with their money. Consumers are also placing more emphasis on making sure their scores are improving.

The removal of negative information

Negative information, such as late payments, can have a huge impact on your credit score. And most negative credit data stays on your credit report for as long as seven years — dragging down your score the entire time.

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