US Credit Scores Dip as Loan Delinquencies Rise

Americans’ credit scores averaged 715 despite higher utilization and delinquencies, a ‘good’ score still viewed as acceptable by most lenders.

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Rising delinquencies on auto loans, credit cards, and mortgage payments led to a dip in national average credit scores, but consumers’ scores overall remain healthy, a new report by credit analytics company FICO said.

Montana-based Fair Isaac Corp. (FICO) on Sept. 16 released its inaugural FICO credit insights report, which took a deep dive into the credit behaviors of American consumers. Rising inflation, changing payment priorities, and the resumption of collection attempts on defaulted student loans—halted in March 2020 during the early days of the COVID-19 pandemic but restarted this past April—have reshaped delinquency patterns and credit scores, FICO said.

Despite increases in credit utilization and delinquencies among various loan types, Americans’ credit scores still averaged 715, a two-point dip from 2024, FICO reports. That figure falls in the “good” credit score category and is widely considered acceptable by most lenders. FICO scores range from below 580 to 850, with anything above 800 considered exceptional.

Julie May, vice president and general manager of B2B scores at FICO, said the new report was created to help uncover impactful trends that influence consumer credit behavior.

“This data shows how consumers are adapting—whether by prioritizing essential payments like auto loans, navigating the return of student loan obligations, or actively monitoring their credit health,” May said. “We hope this proves to be a powerful tool for lenders, policymakers, and advocates working to support financial resilience and inclusion.”

The resumption of student loan debt collections was most keenly felt among younger consumers, FICO reported. About 34 percent of Gen Zers, ages 18–29, hold student loans, versus just 17 percent of the overall population.

Those younger consumers had average credit scores of 676, FICO reported. Gen Z credit users’ three-point year-over-year decrease in credit score is the largest decline of any demographic, FICO said, due largely to student loan debt, affordability issues, rising inflation, and higher interest rates that affected their ability to stockpile a savings buffer.

Loan delinquencies spiked significantly in the past few years and varied by credit type. Mortgage delinquencies spiked by 58 percent since 2021, while bankcard delinquencies were up by 48 percent. Auto loan delinquencies were up by 24 percent, FICO reported, but in terms of importance, consumers were more likely to continue making their car payments, followed in order by mortgages, personal loans, credit cards, and student loans.

“Consumers are experiencing different financial outcomes,” said Tommy Lee, senior director of predictive scores and analytics at FICO. “We’re seeing a reordering of payment priorities. This shift highlights how consumers are making strategic choices to protect essential assets and manage their financial obligations.”

Student loans rank last in payment importance primarily due to forbearance and deferral measures that were enacted during the Biden administration. Currently, more than 42.7 million borrowers have amassed nearly $1.6 trillion in student loan debt, with just 38 percent current on their payment plans, the Department of Education reported.

Just over 38 percent of the population had credit scores between 600 and 749 in 2021, but that figure fell to just below 34 percent in 2025, FICO noted. Consumers with higher credit scores likely benefited from strong stock market performance and appreciation in home values, while those on the lower end struggled under the yoke of inflation that pushed up the cost of goods and services and high interest rates, FICO said.