Does the Average Credit Score in America Show Things Getting Better or Worse?
A two-point drop in your credit score probably wouldn't ruin your day, but when the national average drops by that much for the first time in more than a decade, it's worth taking a closer look.
Experian’s March 2026 report put the average FICO Score at 713, down from 715 in 2024. That’s still “good” credit. The figures came from September 2025, though, so they tell us where Americans stood heading into 2026, rather than what’s happening right now.
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What Is the FICO Average Hiding?
Experian also reported that about a quarter of consumers had excellent credit, meaning a score of 800 or higher. However, the number of Americans with poor credit also grew, suggesting a polarization of the population's finances.
Experian Credit Measure | 2024 | 2025 |
Average FICO Score | 715 | 713 |
Share scoring 800 to 850 | 22.5% | 22.8% |
Share scoring 300 to 579 | 13.2% | 14.7% |
The average hides a widening gap. The top bracket of people with excellent credit grew, but the number of people with poor credit grew even more. If you are already struggling, weaker credit could mean the next loan you need costs more.
But a credit score tells us only so much about someone’s finances. FICO does not include your salary in the calculation. Someone can earn a good income and struggle with payments, while a lower earner keeps a clean record.
That means the national average decline can be a warning sign, but it's not a complete measure of financial comfort.
Why Are Scores Slipping?
Student loan debt explains part of the reversal. In 2025, missed payments on federal loans were once again showing up on credit reports as pandemic-era protections expired. FICO reported on that change as a reason scores fell; some financial trouble that had been kept off credit reports was beginning to show up again.
The fallout for borrowers affected was much more than a two-point wobble. Research from the New York Fed shows that over 2.2 million new delinquent student loan borrowers saw a drop of more than 100 points in early 2025. That analysis used an Equifax scoring model, so those declines are not to be confused with changes in Experian’s FICO average.
There’s more pressure, too. By the end of 2025, 4.8% of household debt was in delinquency, the Consumer Finance Protection Bureau (CFPB) reported. The New York Fed found mortgage performance was worse in lower-income areas and in areas where home prices were falling, but mortgage delinquency remained close to historic normal levels. That indicates households are under pressure, but not that everyone is falling behind.
How Can You Protect Your Score?
The No. 1 rule is not to borrow more than you can afford to pay back.
Second, the Consumer Financial Protection Bureau recommends setting up automatic payments or reminders for at least your card’s minimum payment to help you avoid a missed due date (provided you have sufficient funds in your account) and a drop in your score. You can also pay extra separately.
Next, check what percentage of your available credit you're using. A balance of $2,000 on a $5,000 limit is 40% utilization. Drop it to $1,000, and you cut that down to 20%. Lower balances than your limits tend to help (ideally less than 30% utilization).
Review your credit reports for errors and dispute any inaccuracies. And don't carry a balance because you think paying interest builds credit. The CFPB explicitly states you don’t need to. A better score shouldn’t come with one unnecessary interest charge.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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