While the average FICO credit score in the United States has shown resilience, financial experts caution that this metric may obscure underlying affordability challenges and the impact of escalating costs on household financial decision-making.
According to the latest FICO® Score Credit Insights report, the national average FICO score stands at 714, representing a marginal one-point decline from the previous year but holding steady since October 2025.
A FICO credit score is a numerical representation derived from credit report information, evaluating factors such as payment history, outstanding balances, length of credit history, new credit inquiries, and credit mix. Lenders rely on this score to determine eligibility for mortgages, credit cards, loans, and other financial products.
The report provides an overview of consumer credit health as rising costs associated with auto loans, housing, and credit cards continue to strain household budgets.
Affordability continues to present challenges for many American consumers, particularly those with lower credit scores and limited credit histories.
The findings reveal that first-time home buyers’ average monthly payments have surged 57% since 2019, while mortgage balances for borrowers with scores below 620 have increased 43% since April 2019. Auto loan balances for the lowest-scoring borrowers rose 36%, with 90-plus-day delinquency rates for both mortgages and auto loans rising exclusively within the lowest score categories, remaining unchanged across higher score ranges.
“The stability we’re seeing in the national average FICO score isn’t necessarily because things have gotten easier for consumers — costs have risen across nearly every credit product people use, from mortgages to auto loans to credit cards,” said Tommy Lee, senior director at FICO. “What’s kept the average steady is that delinquency has actually improved or held steady across every major loan type. That’s a story about financial discipline under pressure, not economic ease.”
Delinquency rates remained stable or showed improvement across most financial products, the FICO report indicated. Early-stage mortgage delinquency decreased from 1.42% to 1.35% year over year, while 30-day auto delinquency improved by 5 basis points to 2.6%.
This data follows the Federal Reserve Bank of New York’s quarterly household debt and credit report, which documented a $21 billion increase in credit card balances, reaching $1.26 trillion—a 1.7% quarterly increase and approaching last year’s peak of $1.28 trillion.
To manage expenses, some Americans are turning to buy now, pay later services to prevent substantial purchases from overwhelming their budgets, while others depend on external financial assistance.
Despite these challenges, many Americans continue to prioritize their financial well-being, with nearly three-quarters checking their FICO scores multiple times annually.
“Younger consumers in particular are treating credit as a tool they’re actively managing, not something that happens to them,” Lee noted. “That said, things have not been easy for younger generations.”
Approximately 74% of Gen Z consumers receive some form of financial support, most commonly from parents, while 37% of all Americans report receiving similar assistance, with 19% specifically citing parental support.
“And 68% of Gen Z homeowners told us housing costs have made it harder to keep up with other expenses,” Lee added. “The credit gains are real, but they’re happening alongside — not in spite of — meaningful financial strain.”
Tips to build and maintain a healthy FICO score
According to FICO, most creditors consider scores between 670 and 739 (on a scale of 300 to 850) as “good,” with higher scores indicating lower risk and lower scores suggesting higher risk.
Effective strategies for maintaining a healthy credit score include:
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Making payments on time: Payment history carries the most significant weight in score calculations, making it essential to avoid late or missed payments, defaults, charge-offs, collections, bankruptcies, and foreclosures.
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Making more than the minimum payment to reduce your credit utilization: Outstanding balances represent the second most important factor in FICO scoring. Reducing balances through additional or above-minimum payments can positively impact your score.
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Limiting new credit applications: Each credit card or loan application results in a hard inquiry. Multiple hard inquiries within a short period can negatively affect your score, so new applications should be pursued only when necessary.
