Life How Much Has the Recession Impacted Our Credit Scores? Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint.com Published Nov 11, 2011 2 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. What you’re looking at is a visualization of the changes in FICO scores for the 200 million U.S. consumers with FICO scores over 3 unique periods of time: 2008 to 2009, 2009 to 2010 and 2010 to 2011. The following are some things to consider as you’re reviewing these figures: 2008-2009 Timeframe: 48.1 million consumers saw their FICO scores drop at least 21 points, representing over 24% of the “scoreable” U.S. population. Scores dropping this much is likely because of negative information appearing on a credit report or the consumer taking on new credit card debt (or a combination of both).During the same time period 45.3 million consumers saw their FICO scores increase by at least 21 points.The increase in scores can be attributed to a reduction in credit card debt and negative information aging off of credit reports. 64 million consumers saw their FICO scores remain in a 20 point window, drifting plus or minus 10 points.This is healthy score movement and is a result of consistent credit management practices. 2009-2010 Timeframe: The damage to consumer’s FICO scores isn’t as dramatic during this time period (vs.2008-2009), as 40.1 million consumers experience a FICO score drop of at least 21 points. 49.8 million have improved their scores by at least 21 points, which indicates more consumers were paying down credit card balances and avoiding negative credit information. 68.8 million see their scores remain within a 20 point window. 2010-2011 Timeframe: The damage to consumer’s FICO scores continues to soften from the previous timeframe, with 38.4 million seeing their FICO scores drop by at least 21 points.Interestingly, all three timeframes saw score improvements outpace score decreases, suggesting that more consumers were able to defend their scores from the financial crisis than might be expected.The significant score decreases (those of 51 points or more) are likely caused by a variety of factors including the increase in negative mortgage related credit reporting (foreclosures, settlements, forfeitures of deed, and loan modifications) and the persistence of unemployment and underemployment, which likely resulted in fewer people being able to make payments on their liabilities including student loans, adjusting mortgages, and increasingly higher credit card payments. Further, the filling of income gaps with credit cards likely played a significant role in all score decrease scenarios. Previous Post Countries That Still Have the Golden AAA Credit Rating Next Post Then and Now: The European Debt Crisis Written by Mint.com More from Mint.com Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance