FICO’s analysis reveals how student loan repayment, shifting payment priorities, and generational differences are transforming credit behavior across the U.S.

BOZEMAN, Mont.--(BUSINESS WIRE)--Sep. 16, 2025-- FICO (NYSE:FICO), the leading analytics software company, today released its inaugural FICO® Score Credit Insights report—a first-of-its-kind analysis offering a detailed look at how consumer credit behaviors are evolving across the United States. With FICO Scores used by 90% of top U.S. lenders, the findings provide critical visibility into how Americans are managing credit. The report highlights how inflation, resumed student loan payments, and evolving payment priorities are reshaping credit scores and delinquency patterns nationwide.

“We created the FICO Score Credit Insights report to help the industry uncover the most impactful trends influencing consumer credit behavior,” said Julie May, vice president and general manager of B2B Scores at FICO. “This data shows how consumers are adapting — whether by prioritizing essential payments like auto loans, navigating the return of student loan obligations, or actively monitoring their credit health. We hope this proves to be a powerful tool for lenders, policymakers, and advocates working to support financial resilience and inclusion.”

Key Findings from the FICO® Score Credit Insights fall 2025 report:

• National Average FICO® Score at 715: The average score dipped two points from 2024 (although remained stable since FICO’s last update), driven by rising credit card utilization and a spike in missed payments, in part due to resumed student loan delinquency reporting.
• Younger Consumers See Bigger Credit Score Swings: Gen Z consumers (ages 18–29) experienced the largest average FICO® Score decrease of any age group, down three points year-over-year. This group also showed a higher rate of 50+ point score swings than the national average, reflecting greater financial volatility. A key driver is student loan debt: 34% of younger consumers hold student loans, compared to just 17% of the total population.
• K-Shaped Economic Recovery Reflected in Credit Scores: The middle score range (600–749) shrank from 38.1% of the population in 2021 to 33.8% in 2025, while more consumers moved into both the highest and lowest score brackets, reflecting a K-shaped recovery.
• Payment Hierarchy Evolves, Auto Loans Reclaim Top Priority: Consumers are now 19% more likely to pay auto loans than mortgages, placing autos at the top of the payment hierarchy. Mortgages are 56% more likely to be paid than personal loans, which are 64% more likely to be paid than bankcards. Student loans rank lowest, even among high-scoring borrowers.
• Trends in Delinquency Rates Vary by Credit Product
  • Auto Loans: Delinquency rates increased 24% since 2021, and affordability remains a challenge across all score groups.
  • Bankcards: Delinquencies rose 48% since 2021, with utilization climbing to 35.5%.
  • Mortgages: Delinquencies increased 58% since 2021, though still below pre-pandemic levels.
  • Personal Loans: Delinquencies declined from recent peaks, aided by tighter underwriting.

“The data reflects a K-shaped economy, where consumers are experiencing different financial outcomes but also adapting in meaningful ways,” said Tommy Lee, senior director of Predictive Scores and Analytics at FICO. “We’re seeing a reordering of payment priorities, with auto loans now surpassing mortgages at the top and student loans at the bottom. This shift highlights how consumers are making strategic choices to protect essential assets and manage their financial obligations. These insights help lenders better understand evolving behaviors and support consumers with more tailored solutions.”

Consumers Embrace Real-Time Credit Tracking

Complementing the credit file analysis, a consumer survey commissioned by FICO and conducted by The Harris Poll found that some Americans have sought new credit or relied on credit to manage financial needs. Nearly one in four Americans (24%) say they opened a new credit card in the past year, and 13% opened a new personal loan, as a financial cushion. When faced with job loss or income reduction in the past 12 months, nearly half of Gen Z say they relied on credit cards or Buy Now, Pay Later (BNPL) loans (48% each) to make ends meet. Among borrowers with student loan debt, short-term credit options are especially common: 64% of Gen Z (ages 18-28) and 61% of Millennial (ages 29-44) borrowers report relying on credit cards or other types of loans more heavily in the past 12 months to help cover expenses. Encouragingly, credit awareness is strong—71% of Americans say they check their credit scores multiple times per year, and 55% checked at least once in the past year to improve their financial health. Nearly half of Gen Z (46%) and Millennials (45%) say they monitor their scores monthly, suggesting a growing interest in maintaining financial health.

The full FICO^® Score Credit Insights report is available here: https://www.fico.com/en/fico-score-credit-insights

The FICO^® Score Credit Insights analysis establishes a new standard for understanding evolving consumer credit patterns. FICO is committed to empowering consumers with credit education and resources, as well as banks, fintechs and credit risk leaders with powerful, interactive tools to explore new strategies for expanding access to credit. To learn more, check out FICO’s Score A Better Future^® initiative and the FICO® Score Innovation Lab.

Methodology

The data used for the FICO^® Score Credit Insights report is based on a nationally representative sample of millions of consumer credit files spanning multiple periods from one of the national consumer reporting agencies.

A survey was also conducted online within the United States by The Harris Poll on behalf of FICO from August 7-11, 2025 among 2,079 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@fico.com.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO^® Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Learn more at https://www.fico.com.

FICO and Score A Better Future are registered trademarks of Fair Isaac Corporation in the U.S. and other countries.

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Source: FICO