Americans' credit scores improved last year despite the economic pain that characterized much of 2020, according to MarketWatch. Over the course of last year, during the COVID-19 pandemic, the average FICO score went from 703 to 711, while the average Vantage score went up four points in the same time period, to 690.

While this might seem counterintuitive at first glance, as the general assumption is that people lean even harder on credit when times are tough, MarketWatch said it is a direct consequence of the pandemic's economic chaos or, rather, the government's response. Credit scores in many areas were frozen as a result of the CARES Act, and many Americans who received government stimulus money and enhanced unemployment  either paid down their debts or did not rely as much on credit to make purchases. Further cash has been freed up through moratoria on student loan payments, evictions and foreclosures.

MarketWatch noted that although Americans may be appreciating the extra breathing room, creditors will eventually want what they're owed, likely with interest, and so scores may drop to previous levels after the pandemic; further, while credit reporting on certain matters were frozen, others, like car loans, remain active and can still impact scores.