Part 5/8:
Decline in U.S. Credit Scores Signal Financial Strains
Recent data from FICO reveals that American consumers’ credit scores are declining at the fastest rate since 2009 during the Great Recession. The average credit score dropped by two points last year to 715, driven by increased credit card use and missed payments on student loans.
Particularly affected are Generation Z consumers, who experienced an average decline of three points. This sliding credit score trend indicates rising financial stress among younger adults, possibly stemming from inflationary pressures and economic uncertainty. The decline underscores the importance of prudent borrowing and payment practices in maintaining financial health.