FICOs on Fire! Credit Scores Climb to Historic Highs

FICOs on Fire! Credit Scores Climb to Historic Highs

It's the end of the school year, and proud parents across the country are beaming over their little ones' A+ report cards.

But adults actually have some pretty high scores to boast about, too.

According to new FICO data, the average American's credit score rose four points in 2014—hitting a record-breaking high of 694.

This digit trumps even pre-recession numbers—and could signal better money habits as a result of the financial crisis.

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For example, a drop in credit card debt seems to be one of the major driving factors in the FICO boost.

While scaling back during the tight economic times, Americans likely rang up less debt on their cards, FICO spokesman Jeff Scott told Credit.com. That meant lower credit utilization—or the amount of credit you use compared to what's available—and likely resulted in better scores overall.

Analysts also attribute the noticeable rise in numbers to a growing awareness of the importance of credit scores. And even better, many big banks and organizations are now offering consumers free access to their scores, along with resources on how to improve those stats.

Want to learn more about your own number? Check out our guide to get the lowdown on credit scores.

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