The average FICO score dropped to 715 in April, down from 717 the year prior, marking the second consecutive year-over-year decline. This dip in the national average is a reflection of broader trends in consumer credit, with increased utilization and delinquency rates contributing to the overall downturn.
Gen Z Faces the Largest Drop
Among all age groups, Gen Z borrowers experienced the steepest decline in their FICO scores. Their average score fell by three points to 676, the largest drop of any age group since 2020. In fact, 14% of Gen Z borrowers saw their scores fall by 50 points or more—an alarming trend that contributed to the overall drop in credit scores.
FICO scores, which range from 300 to 850, are a key metric used by U.S. banks to assess credit risk and determine loan eligibility. As such, the recent decline in the national average score reflects growing financial challenges for many consumers, especially younger generations.
Student Loan Delinquencies Take a Toll
One of the major factors behind this decline is the resumption of reporting student loan delinquencies. With student loan forbearance ending in 2024, many borrowers, particularly Gen Z, are now seeing the impact of missed payments reflected on their credit reports. The overall rate of student loan delinquencies reached a record high of 3.1% of the entire scorable population.
According to the FICO report, 34% of Gen Z borrowers are still paying off student loans, significantly higher than the 17% of the general population. With this level of debt, it’s no surprise that Gen Z borrowers were disproportionately affected by this year’s credit score decline.
Credit Card Utilization Continues to Climb
Another contributor to the drop in FICO scores is the rising rate of credit card utilization. As credit card balances continue to climb, the amount of debt relative to available credit is reaching higher levels. In April 2025, the credit utilization rate hit 35.5%, up from 29.6% in April 2021, when government stimulus checks and pandemic-related restrictions temporarily bolstered savings and spending.
Higher credit utilization is a key factor that can negatively impact credit scores, as it suggests borrowers may be relying more on credit to manage their expenses. This trend is concerning for many consumers, as high utilization can lead to higher interest rates and reduced access to new credit.
A Broader Look at Consumer Credit
While the average FICO score declined, the median score actually increased slightly, rising from 744 to 745. This indicates that while more consumers at the lower end of the credit score spectrum experienced significant drops, a number of individuals in the higher ranges continued to improve their credit profiles.
However, the overall drop in average scores points to continued financial strain for many Americans, especially younger consumers and those carrying high levels of debt.
What Can You Do to Improve Your Score?
For those struggling with a lower credit score, there are actionable steps to help improve your financial standing. One key piece of advice is to keep your credit card utilization below 30% of your available credit. Also, paying bills on time and avoiding late payments can go a long way in improving your score.
FICO’s recent data highlights the challenges facing consumers today, but with proactive financial management, it’s possible to regain financial health and improve your credit score over time.
