Americans’ credit scores are falling at the fastest pace since the 2008 financial crisis, according to new data from FICO. The national average dropped by two points in 2025, the steepest decline since the Great Recession.
Rising delinquencies on auto loans, credit cards, and personal loans signal mounting financial stress, even as Wall Street continues to post record highs.
Younger Americans are being hit the hardest. Gen Z borrowers saw their scores drop by three points on average, with 14% experiencing declines of 50 points or more. The return of student loan payments has worsened the strain, with delinquency rates climbing to record highs. Many are turning to credit cards and “buy now, pay later” loans to stay afloat.
Analysts warn that the trend reflects an economy under pressure, where Main Street is struggling despite official claims of growth.
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TIPP Staff
