--- title: The Average Credit Score Just Fell at Fastest Pace Since the Great Recession description: Experts say the rare two-point drop in the nation's average credit score is caused by a jump in delinquency rates. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy has eight years of experience in personal finance journalism. Through approachable guides, explainers, news and more, Adam has reported extensively on credit for Money. His credit coverage won an award from the nonprofit Money Management International. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 501 covers: - Credit - Banking - Business - Career Advice - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: 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. education: University of Florida at_money_since: 2015 articles: 217 covers: - Credit - Banking - Business - Career Advice - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2025-09-17T18:50:36.000Z' modified: '2025-09-17T18:50:36.000Z' section: Credit word_count: 661 canonical: https://money.com/biggest-credit-score-drop-since-great-recession/ type: Article source: structured-blocks --- > **Disclosure:** 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](https://money.com/page/disclaimer/). ![Photo-illustration of a downward arrow with hands holding credit cards](https://img.money.com/2025/09/News-Credit-Scores-Fall.jpg) In another indication of a puttering economy, the average credit score in the U.S. has fallen by two points since this time last year. The credit scoring firm FICO [said Tuesday](https://www.fico.com/blogs/student-loan-delinquencies-lower-average-fico-score-715) that the average [credit score](https://money.com/what-is-a-credit-score/) for all U.S. consumers is now 715, down from 717 logged in October 2024. According to separately released FICO [data](https://www.fico.com/blogs/average-u-s-fico-score-stays-717-even-consumers-are-faced-economic-uncertainty), the decline marks the first time since 2009 during the Great Recession that the average FICO score has fallen by two points within one year. FICO scores range from 300 to 850, and a score of 715 is considered to indicate “good credit” overall, but the two-point decline in consumers’ collective score is raising alarm bells. Each year, average credit scores tend to rise — sometimes by as much as five points. Any decline is rare, and two-point declines are especially so. ## Don't let a mistake from the past hold you back ### Credit Saint can help you remove negative items from your credit report and get your financial future back on track. Select your state to get started today! [View Plans](https://money.com/pr/mc7163d7d8b6?ap_referrer=%2Fbiggest-credit-score-drop-since-great-recession%2F) The reason behind the decline is that more Americans are falling behind on many of their loan payments. “Delinquency rates on auto loans, credit cards, and personal loans are at or near their highest levels since 2009,” economist Amy Crews Cutts says [in the FICO report](https://www.fico.com/en/resource-access/download/55026). These warning signs are “more consistent with an economy in recession than one still in expansion,” she adds. It's important to note that a U.S. recession has not been officially declared, though economists are growing increasingly wary of one. ~One~ Mark Zandi, chief economist at Moodys, [says](https://x.com/Markzandi/status/1967273427993088009) the odds of recession in the next 12 months are now "uncomfortably high." ## Gen Z’s credit takes an outsized hit Just as Gen Zers are starting off their financial lives, their credit scores are getting clobbered. Born between 1997 and 2012, Gen Z borrowers have an average [credit score](https://money.com/how-to-check-your-credit-score/) of 676, according to FICO — that’s 39 points lower than the national average. While younger consumers' credit scores always tend to lag behind those of older consumers, the average score for these young borrowers also fell more than others, too — dropping by three points since last year. Experts say [missed federal student loan payments](https://money.com/student-loan-delinquencies-hurt-average-credit-score/) are largely to blame for falling scores, now that delinquencies are being reported to the credit bureaus again after a five-year pause. Tommy Lee, senior director of analytics and scores at FICO, suggests the issue could get worse before it gets better. “Additional student loan delinquencies are expected over the next few months, as not everyone who has missed student loan payments has been reported as delinquent yet,” Lee says [in a FICO analysis](https://www.fico.com/blogs/student-loan-delinquencies-lower-average-fico-score-715). Federal student loans are unique from other items on one’s credit history, like credit cards or auto loans. For most loans, delinquencies are broken up into three categories: 30 days, 60 days or 90 days. The later the missed payment, the harder it dings one’s score. With these student loans, however, they get reported only once they’ve reached the 90-day mark. So when student loan borrowers fall behind, their scores go from no penalty one day to a harsh 90-day delinquency the next. According to research from the New York Federal Reserve Bank, a new student loan delinquency showing up on a borrower’s [credit report](https://money.com/how-to-check-your-credit-report/) can tank their credit score by [more than 150 points](https://libertystreeteconomics.newyorkfed.org/2025/03/credit-score-impacts-from-past-due-student-loan-payments/), depending on their starting score. For student loan borrowers with scores lower than 620, a delinquency knocks their score down 87 points. However, for borrowers with great credit — 760 or above — a delinquency sets them back 171 points on average. FICO research suggests that a wave of new delinquencies could be coming soon, further weighing down the nation’s average credit score. So far, about 2.7 million student loan borrowers have a delinquency reported, and the ramifications have already been harsh. Another 5.4 million people are at serious risk of delinquency, FICO says, because they haven’t made a single student loan payment this year. ## Find a Credit Repair company that works for you ### 🥇 Most Affordable Credit Help Company! ![View Plans](https://s3.consumersadvocate.org/prd/image/image/28241/medium_ae18ab6b-f004-4597-a78c-b5057ebf3778.png) Our Partner [View Plans](https://money.com/go/03e943ed1e99?bidid=4123860178&pmeta=p129-c527-u25367&ptid=671606572&ptoken=dc594de597e6a284eda563bed1c861d5) ### Take Steps Toward Improving Your Credit with a Trusted Legal Team ![View Plans](https://s3.consumersadvocate.org/prd/image/image/541/medium_AEPRGHMZaPsbrAuaWpZtkFWwSMTooS.png) Our Partner [View Plans](https://money.com/go/0c8d6154f439?bidid=4123860168&pmeta=p129-c527-u25367&ptid=671606572&ptoken=fea72c4092f35a38b62dbc2a302df88c) ### Offers a single, low-cost credit repair package ![View Plans](https://s3.consumersadvocate.org/prd/image/image/1992/medium_Sky_Blue_Credit_Repair_Logo.png) Our Partner [View Plans](https://money.com/go/cb0d88ebb1b2?bidid=4123860173&pmeta=p129-c527-u25367&ptid=671606572&ptoken=0330db3d46676eb6bda31b557ae045fe) ### All plans include unlimited disputes to all three credit bureaus ![View Plans](https://s3.consumersadvocate.org/prd/image/image/544/medium_AzCOfmOSdIObukHTtkAFkkVcednFPx.png) Our Partner [View Plans](https://money.com/go/3414d168a10d?bidid=4123860184&pmeta=p129-c527-u25367&ptid=671606572&ptoken=b810402799cb8f4450452cd0bf80f923) ### Even the most basic packages include financial management tools ![View Plans](https://s3.consumersadvocate.org/prd/image/image/29349/medium_5f909068-0d8c-41f9-91b3-62c42c6b942c.webp) Our Partner [View Plans](https://money.com/go/fac1f87d0adb?bidid=4123860190&pmeta=p129-c527-u25367&ptid=671606572&ptoken=83c47aeb2066b648078939c0173eee7b) ![](https://s3.consumersadvocate.org/prd/image/image/28241/medium_ae18ab6b-f004-4597-a78c-b5057ebf3778.png) Clean up your credit report with Credit Saint [View Plans](https://money.com/pr/sc3ba8a1c51c?ap_referrer=%2Fbiggest-credit-score-drop-since-great-recession%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/biggest-credit-score-drop-since-great-recession/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Credit", "item": "https://money.com/credit/" }, { "@type": "ListItem", "position": 3, "name": "The Average Credit Score Just Fell at Fastest Pace Since the Great Recession" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/biggest-credit-score-drop-since-great-recession/#webpage", "url": "https://money.com/biggest-credit-score-drop-since-great-recession/", "name": "The Average Credit Score Just Fell at Fastest Pace Since the Great Recession", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2025-09-17T18:50:36.000Z", "mainEntity": { "@id": "https://money.com/biggest-credit-score-drop-since-great-recession/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/biggest-credit-score-drop-since-great-recession/#breadcrumb" }, "dateModified": "2025-09-17T18:50:36.000Z" }, { "@type": "Article", "headline": "The Average Credit Score Just Fell at Fastest Pace Since the Great Recession", "articleSection": "Credit", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2025/09/News-Credit-Scores-Fall.jpg", "width": 2880, "height": 1920, "caption": "News-Credit-Scores-Fall" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy has eight years of experience in personal finance journalism. 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