FICO Average Score Falls to 714 as Student Loan and Mortgage Delinquencies Rise
FICO reports the national average credit score fell to 714, down one point from April 2025 and two points from October 2024, driven by resumed student loan delinquency reporting and a slight rise in mortgage delinquencies. Meanwhile, a record 48.1% of consumers now hold scores of 750 or higher, illustrating uneven credit dynamics.
1. National Score Decline
The FICO report shows the average U.S. credit score declined to 714, marking a one-point drop from April 2025 and a two-point decline since October 2024. This decrease was primarily attributed to the resumption of student loan delinquency reporting at the end of 2024 and a modest rise in mortgage delinquencies.
2. Record High Strong Scores
Despite the overall decline, 48.1% of consumers now boast FICO Scores of 750 or higher—a record high. This divergence highlights a K-shaped credit environment where higher-scoring borrowers are outperforming those facing financial stress.
3. Gen Z Impact and Credit Behavior
Gen Z consumers (ages 18–29) saw their share of 50-point score drops climb to 14.4% from 11.3% year-over-year, largely due to student loan repayment issues. At the same time, Gen Z leads all age groups in opening new bankcards, indicating an active, strategic approach to traditional credit.
4. Delinquency Trends and Lender Implications
Student loan delinquencies spiked in April 2025 but have since stabilized, with only a 0.1% increase through October 2025. Mortgage delinquencies are approaching pre-pandemic levels as home prices soften, prompting FICO to advise lenders to adopt more nuanced credit strategies in this transitional market.