National FICO Score Drops Amid Financial Stress

Key factors driving the decline and strategies to improve credit

Apr. 5, 2026 at 7:34pm

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The national average FICO score has declined for two consecutive years, reflecting a broader trend of increasing financial stress among American consumers. This downward trend follows more than a decade of steady growth in credit scores after the Great Recession. Several economic factors have contributed to the drop in average scores, including high interest rates, rising living costs, and increasing delinquency rates on credit cards, student loans, auto loans, and personal loans.

Why it matters

The decline in national credit scores has practical implications for consumer access to capital, as a good credit score is essential for borrowing power and overall financial wellbeing. The widespread drop in scores may indicate higher levels of consumer stress, which could potentially limit long-term borrowing power for a significant portion of the population.

The details

According to data from FICO, the average score dropped from 718 in 2023 to 717 in 2024, and further decreased to 715 in 2025. This reversal is driven by a surge in debt and missed payments nationwide, with some delinquency rates reaching levels not seen since the 2009 financial crisis. High interest rates, maintained by the Federal Reserve throughout 2025 to combat inflation, have increased the cost of borrowing. This has occurred simultaneously with a surge in everyday living costs, pushing many households deeper into debt. The impact is particularly evident in credit card balances and delinquency rates, with the percentage of credit card accounts that were at least 90 days past due reaching a 12-year high in the final quarter of 2024.

  • The national average FICO score dropped from 718 in 2023 to 717 in 2024.
  • The national average FICO score further decreased to 715 in 2025.
  • In the final quarter of 2024, the percentage of credit card accounts that were at least 90 days past due reached a 12-year high.

The players

FICO

A company that provides credit scoring services and data.

Federal Reserve Bank of Philadelphia

A regional Federal Reserve bank that tracks economic data, including delinquency rates.

Consumer Financial Protection Bureau (CFPB)

A federal agency that regulates the consumer financial services industry, including providing guidance on credit utilization ratios.

Josh Denton

Manager of product strategy – lending for consumer and business banking at BOK Financial®.

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What they’re saying

“A good credit score is essential because it impacts the ability to access capital and contributes to overall financial wellbeing.”

— Josh Denton, Manager of product strategy – lending for consumer and business banking at BOK Financial®

What’s next

Financial experts and institutions suggest several methods for consumers to stabilize or raise their scores, including reducing outstanding balances, requesting higher credit limits, utilizing secured credit cards, becoming an authorized user on another account, applying for credit-builder loans, and regularly checking credit reports to dispute inaccuracies.

The takeaway

The decline in national credit scores highlights the increasing financial stress faced by American consumers, driven by factors such as high interest rates, rising living costs, and growing debt levels. This trend could potentially limit long-term borrowing power for a significant portion of the population, underscoring the importance of proactive credit management strategies.