The Average Credit Score Just Dropped Again. How Do You Stack Up?

We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. Learn more.

Credit Credit Score Share Share Close Mail Page URL https://money.com/average-credit-score-drops-student-loans-mortgages/ Link copied!

The Average Credit Score Just Dropped Again.

How Do You Stack Up? By: Liliana Hall Liliana Hall Reporter | Joined March 2025 Liliana Hall joined Money in 2025. She is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Has also written: 13 Everyday Items Getting More Expensive Because of the Iran War Student Loan Interest Rates for April 2026 Best Long-Term Care Insurance Companies of April 2026 Few Americans Have Perfect Credit Scores.

Experts Say You Don't Need One IRS Delays: These Tax Returns and Refunds Are the Most Likely to Get Held Up in 2026 See full bio Editor: Kaitlin Mulhere Kaitlin Mulhere Editor | Joined March 2015 Kaitlin Mulhere is an editor at Money.com. Since joining in 2015, she’s written and edited about a variety of personal finance topics, including banks, credit, student debt, saving strategies and more. Has also written: Best Student Loan Refinance Companies of 2026 Is Debt Settlement a Good Idea? Who Doesn't Have to File Taxes This Year? Details for Retirees, Students and Gig Workers Pell Grants Will Soon Help Students Pay for Job Training Programs From Loans to Jobs, Here's How the Fed Rate Cut May Affect Your Wallet See full bio Published: Apr 13, 2026 1:23 p.m. EDT 5 min read Money; Getty Images Credit scores are edging lower as delinquencies continue to weigh on borrowers. FICO's latest Credit Insights report shows the average U.S. credit score fell to 714 in March, down one point from a year ago and two points since late 2024. The latest decline in the average U.S. credit score, which has been gradually dropping over the past couple years, is modest, but it underscores a widening divide in Americans’ credit health. While some borrowers are falling behind — particularly younger consumers hit by student loan delinquencies and homeowners struggling with mortgage payments — others are thriving. Nearly half (48%) of consumers now have credit scores of 750 or higher, according to FICO. That divide comes as overall household debt continues to climb and credit card balances remain near record highs, according to Federal Reserve Bank of New York data. Ads by Money. We may be compensated if you click this ad.AdFind a Credit Repair company that works for you🥇 Most Affordable Credit Help Company!View Plans The advisory team helps you take the necessary steps to improve your credit health overall Setup or First Work Fee: $99 - $195 Monthly Fees: $79.99 - $129.99 Over 10,000 Google Reviews at 4.8 Stars 90-day Money-Back Guarantee Take Steps Toward Improving Your Credit with a Trusted Legal TeamView Plans Licensed attorneys, paralegals, and personalized score improvement strategies $139.95 per Month $1M coverage in identity theft Mobile app allows you to monitor the development of your case Free credit assessment - Cancel Anytime Offers a single, low-cost credit repair packageView Plans ​​Pause and resume your membership at will through your online account Setup or First Work Fee: $79 ($119 for couples) Monthly Fees: $79, $99 or $119 ($119, $149 or $179 for couples) Discounts available for couples 90-day Money-Back Guarantee All plans include unlimited disputes to all three credit bureausView Plans Monthly fees: $79 or $119 Flat-rate six month fee for $599 also available First work fee: $19 No available discounts Money-back satisfaction guarantee refunds the month you cancel the service and previous month Even the most basic packages include financial management toolsView Plans Credit monitoring is included with every plan, regardless of the price Setup or First Work Fee: $29 - $49** Monthly Fees: $69 - $149 60-day Money-Back Guarantee **(With $100 back coupon orig. price of $129 - $149) The result is what analysts describe as a “K-shaped” credit landscape: borrowers with strong credit continue to see improvement, while lower-scoring consumers are slipping back toward pre-pandemic levels. “What makes this particularly interesting is that we're simultaneously seeing a record share of consumers demonstrating strong, consistent credit behaviors,” Ethan Dornhelm, head of scores analytics at FICO, said in the report. “The result is a credit market that's both more challenging for some and more rewarding for others.” Younger borrowers are taking the biggest hit About 14% of consumers ages 18 to 29 saw their credit scores drop by at least 50 points between October 2024 and October 2025, compared with roughly 10% of the overall population. These declines are largely tied to student loan repayment struggles, as many younger borrowers are navigating payments for the first time without the safety net that existed during the pandemic. Some of those pandemic-era protections lasted for more than four-and-a-half years, and so when missed payments began having negative consequences again in the fall of 2024, the impact was significant. Nearly one-third of borrowers with payments due, or about 7.1 million people, now have a new student loan delinquency on their credit reports, FICO reports. For those borrowers, scores have fallen by an average of 62 points since early 2025. Although the return of student loan payments triggered a sharp rise in delinquencies, there are signs the situation may be starting to stabilize. FICO data shows student loan delinquencies have "leveled off" in recent months after an initial surge when missed payments began hitting credit reports again in early 2025. The delinquency rate rose by just 0.1% between April and October 2025. At the same time, most other forms of debt, including credit cards and personal loans, are showing signs of stabilizing after a period of post-pandemic volatility. Mortgage delinquencies, however, continue to rise, suggesting some households are still under pressure from higher borrowing costs and housing expenses. In October 2025, the 30-day-plus delinquency rate rose to 4.8% — close to its pre-pandemic level of 5%, according to FICO. Mortgage rates, which have hovered well above pandemic-era lows in recent years, have made homeownership and refinancing significantly more expensive. “Mortgage markets present a more complex picture at present,” the report said. “With delinquencies continuing an upward trajectory toward pre-pandemic levels, this sector requires ongoing vigilance during this period of continuing market transition.” While the average FICO score of 714 remains elevated by historical standards, the data shows a crack between thriving and struggling borrowers that could continue to grow, shaping how consumers access financial products in the months and years ahead. Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: Student Loan Delinquencies Are So Bad They're Hurting America's Average Credit Score Few Americans Have Perfect Credit Scores.

Experts Say You Don't Need One The Benefits of 'Nepo Baby' Credit Scores Don't Last Forever, Study Finds SHOWHIDEAds by Money. We may be compensated if you click this ad.AdClean up your credit report with Credit SaintView Plans