The average FICO credit score in the United States fell in 2025, a worrying sign about the financial health of millions of people.

According to the first FICO Score Credit Insights report, the national score dropped two points compared to the previous year, going from 717 to 715.

This decline reflects an increasingly common reality: many Americans are turning to credit to make ends meet. According to the report, average credit card usage increased significantly, reaching 35.5% in 2025, compared to 29.6% in 2021.

This is compounded by a spike in late payments, driven in part by the resumption of student loan delinquency reporting, which particularly affects younger people.

The impact of this decline goes beyond a simple number. The FICO score, which ranges from 300 to 850, is key to determining whether a person qualifies for loans, credit cards, and even determining the amount of interest and credit limit. The lower the score, the greater the risk for lenders, which translates into more difficult financial conditions for the consumer.

One of the report's most notable findings is that Generation Z (young people between 18 and 29 years old) was the hardest hit. This group saw an average drop of three points in their score, the steepest of all age groups. Furthermore, they experienced more fluctuations greater than 50 points than the national average, reflecting greater financial instability.

FICO attributes this phenomenon to the high level of student debt, as 34% of young people have student loans, compared to 17% of the total population.

The report also revealed a trend that reflects an uneven economic recovery. More and more people are falling out of the middle FICO score range (between 600 and 749). This group represented 38.1% of the population in 2021, but fell to 33.8% in 2025.

However, not everyone dropped: some rose to the highest rank, while others dropped even further.FICO described this phenomenon as a "K-shaped recovery," where some are making progress while others continue to struggle. Faced with this scenario, many Americans are taking steps to take care of their finances. Fifty-five percent checked their credit score at least once in the past year, up from 49% the previous year. Additionally, consumers are being more strategic about prioritizing their payments. In fact, according to FICO, people are now 19% more likely to pay their car loan than their mortgage. It also shows that mortgages are 56% more likely to be paid off than personal loans, and personal loans are 64% more likely than credit card loans.

Student loans rank last in repayment priority, even among people with high scores.

“This shift demonstrates how consumers are making strategic decisions to protect their essential assets and manage their financial obligations,” explained Tommy Lee, senior director of predictive analytics at FICO.