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

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.

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.

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