Recent data from FICO reveals concerning news: the national average credit score in the U.S. has fallen, dropping by two points since 2024, now sitting at 715. Though a two-point dip might seem minimal at first glance, experts warn that this marks the largest decline since the Great Recession—and it could have significant implications for the middle class.
A Warning Sign for the Middle Class
Grant Cardone, CEO of investment firm Cardone Capital, tells NewsNation that the financial strain on American consumers is reaching critical levels. “The middle class is getting crushed; it’s too much debt for the average consumer,” Cardone said. “We’ve been seeing rolling recessions for years now—this is not a one-off problem.”
FICO scores, which range from 300 to 850, are a critical measure of an individual’s creditworthiness and help banks assess the risk of lending. The score can impact everything from mortgage rates to personal loans, making a decline in these numbers a troubling sign.
Rising Debt and Delinquency Rates
Credit card debt continues to climb, with average utilization now at 35.5%, up from 29.6% just three years ago. The FICO report also highlights troubling data on student loans. Between February and April 2025, 6.1 million consumers saw a student loan delinquency report added to their credit files. This suggests that more Americans are falling behind on payments, further weakening their financial stability.
Gen Z Faces a Sharp Decline
The youngest adults—Generation Z—are feeling the brunt of this financial squeeze. Their average credit score has dropped to 676, a three-point decrease from the previous year. This marks the sharpest year-over-year decline of any age group since 2020.
Cardone, who has been vocal about the student debt crisis, points to the staggering $1.7 trillion in student loan debt as a major factor in this financial strain. “Less than 40% of college graduates actually get jobs in their field. Yet they’re saddled with this mountain of debt,” he said, referring to college loan burdens. “It’s the most inflated commodity on the planet.”
The Middle Class Is Feeling the Pressure
With growing debt and declining credit scores, many Americans are facing increased scrutiny from lenders. Cardone emphasizes that banks are becoming far more cautious, analyzing loans with a sharper eye due to the mounting financial pressures faced by borrowers.
For the middle class, these trends may signal more difficulty ahead in accessing affordable credit, making it harder to achieve key financial goals. Such as homeownership or securing loans for personal or business needs.
