It’s the biggest drop since 2009.
Transcript:
Credit Scores are slipping.
The national average fell two points to 715, down from 717 last year and 718 in 2023 – that’s according to FICO, the company behind one of the most widely used scoring systems.
The culprit? Rising credit card balances, more missed payments, and the return of student loan delinquencies. Americans are leaning harder on credit cards to cover the rising cost of living more with average utilization climbing to 35.5%, up from 29.6% in 2021.
Delinquencies on credit cards, car loans, and personal loans are now near 2009 levels – “more consistent with an economy in recession than one still in expansion,” FICO warned.
Younger borrowers are under the most pressure: 14% of Gen Zers saw their credit score drop 50 points or more in the past year, squeezed by student debt and a soft job market.
Even after the slide, scores remain far above Great Recession levels – but the direction matters. Lower scores mean tougher loan approvals, higher interest rates, and smaller credit lines.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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