Overview

• FICO’s new Credit Insights report shows a two-point year-over-year decline to 715, marking the second consecutive annual drop in the national average.
• Delinquency rates on auto loans, credit cards and personal loans are at or near their highest levels since 2009, while mortgage and home-equity delinquencies remain near historic lows.
• Gen Z recorded the largest average decline at three points, with 14% experiencing 50-point score drops as student-loan delinquencies reappeared on credit files and 34% of the cohort holds student debt.
• Average credit card utilization rose to 35.5% from 29.6% in 2021, and borrowers increasingly prioritize essential payments such as auto loans over student loans and personal debt.
• Score distribution is polarizing as the share in the 600–749 range fell to 33.8% from 38.1% in 2021; 55% of Americans checked their score in the past year, and FICO plans to incorporate buy-now-pay-later data this fall.