FICO's national average score dips
By: Medora Lee
USA Today
..... Credit scores are dropping nationwide, reflecting struggles Americans are having to stay afloat financially, according to FICO.
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The national FICO score, or three-digit number used to summarize a person's credit report, fell two points from last year [2024] to 715, the credit scoring services company said in its inaugural FICO Score Credit Insights report. The decline was driven by rising credit card utilization and a spike in missed payments, partly to resumed student loan delinquency reporting, FICO said.
..... Many consumers had relied more heavily on credit card to make ends meet, driving average credit cared utilization in 2025 to 35.5% up form 29.6% in 2021.
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A drop in FICO scores can be concerning because lenders sue them to decide whether to approve loans and credit cards, and to determine interest rates and credit limits. Scores range from 300 to 850, with a higher score indicating lower risk to lenders and a lower score suggesting a higher risk.
..... FICO's new report also "shows how consumers are adapting - whether by prioritizing essential payments like auto loans, their credit health," Julie May, vice president and general manager of B2B Scores at FICO, said in a statement.
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Gen Z, or those who are 18 to 29 years old, saw the largest average FICO score decrease of any age group, down three points year-over-year, FICO said.
..... They also experienced more 50-plus-point swings in their FICO score than the national average, reflecting greater financial volatility, it said. Much of that volatility due to student loan debt, FICO said. Thirty-four percent of younger consumers hold student loans, compared with just 17% of the total population.
..... Many Americans also continue to exit the middle of the FICO score range (around 600 to 749), data showed. Middle FICO score holders fell to 33.8% of the population this year [2025] from 38.1% in 2021.
..... However FICO noted that all these people didn't drop to lower scores. Instead, consumers moved into both the highest and lowest care brackets,: reflecting a K-shaped recovery."
..... A K-shaped recovery means economic improvement is uneven, with some people moving up while others continue to move down or struggle.
..... Struggling Americans are re prioritizing and keeping a closer eye on their credit scores, FICO data showed. More than half (55%) of Americans checked their credit score at least once in the past year, [2025] up from 49% in 2024, it said.
..... Consumer are now 19% more likely to pay auto loans than mortgages, placing autos at the top of the payment hierarchy, it said. Mortgages are 56% more likely to be paid than personal loans, which are 64% more likely to be paid than bank cards.