Credit Scores Plummeting Faster Than Since the Great Recession

Credit Score Decline

• 📉 Credit scores are falling at the fastest pace in the U.S. since the Great Recession, indicating widespread financial struggle.
• ⚠️ The national average FICO score dropped by two points this year, marking the most significant decline since 2009.
• 📊 While still higher than during the Great Recession, scores have been trending downwards for two consecutive years.

Rising Delinquencies

• 🚗 FICO data reveals a growing number of borrowers are falling behind on payments for car loans, credit cards, and personal loans.
• 📈 Delinquency rates are now at or near their highest levels since 2009.

Gen Z Financial Pressure

• 🎓 Gen Z is experiencing the most significant drop in credit scores among all age groups since 2020.
• 📚 A record 29% of individuals with student debt have been reported as delinquent, with an additional 9% potentially facing delinquency due to missed payments.
• 💸 Nearly two-thirds (64%) of Gen Z student borrowers rely on additional debt, such as credit cards or personal loans, to cover basic living expenses.

Economic Disconnect

• 🏢 The struggles of Main Street contrast sharply with the euphoria on Wall Street, highlighting a k-shaped economy.
• 💰 A 22-year-old from Orlando shared that it took 14 months to find a job, and even then, the income is insufficient to cover living costs and student debt.
• ⚡ A declining credit score makes borrowing more expensive and spirals into further financial difficulty.