Americans have generally managed to keep their credit scores intact despite grappling with high prices and economic worries, but don't let that fool you into thinking consumers are all okay.
Despite the average credit score being unchanged at 714 from October, there are affordability pressures building beneath the surface, according to FICO, which tallies FICO Scores used by lenders to measure consumer credit risk. Lower-scoring borrowers and those with thin credit files are absorbing the sharpest cost increases, said the company's latest FICO Score Credit report.
"That stability (in the average FICO score) does not mean consumers are free from financial pressure," the report said. "Housing and vehicle payments have risen faster than inflation,
while bankcard and personal loan balances continue to grow.
FICO scores range from 300 to 850. A higher score indicates lower risk to lenders, and a lower score suggests a higher risk. Lenders use them to decide whether to approve loans and credit cards and to determine interest rates and credit limits.
What are some of the sharpest pain points for consumers?
Americans continue to struggle with housing costs, with the average monthly payment for a first-time homebuyer rising to $2,563 from $1,635 in April 2019, a 57% increase that has outpaced inflation every year since rates began climbing in 2022, FICO said.
The cost of financing a car also has been climbing faster than prices generally. After a steep rise in prices from 2021 to 2022, the amount that consumers financed with auto loans grew faster than inflation, it said.
Whose credit score is improving most?
Gen Z (18-29 year olds) and Millennials (ages 30-44) have seen the biggest gains in average FICO score since beforethe pandemic. Gen Z added 17 points and Millennials gained 10 points, FICO said.
"Compared with seven years ago, younger consumers are more likely to build stronger credit profiles — paying bills on time, keeping debt low, and monitoring their credit," said Tommy Lee, senior director at FICO. "In April 2019, 20% of 18-29 year olds had a score of 750+. By April 2026, that had grown to 27%."
But that doesn't mean they're feeling less financial pressure. Nearly 7 of 10 Gen Z and more than half of Millennials said high housing costs made it harder to keep up with other expenses, even as about three-quarters of Gen Z and half of Millennials said they received and relied on ongoing financial support, FICO said.
"We don't have data on whether that support is helping them (Gen Z and Millennials) avoid missed payments," Lee said. But "it's a pattern worth watching. But (it's) only one piece of a larger story about younger consumers improving their credit."
How are Gen X and older doing?
Gen X (45-59 year olds) saw a 6-point jump in their average FICO score since April 2019, but it also has posted the largest decline of any generation since the national average peaked in April 2023, data showed. They've also seen the steepest credit card balance growth of any age group since 2019.
"That's consistent with a generation carrying real cost pressure," Lee said. "While some of that pressure may come from supporting both kids and aging parents, we think there is a combination of factors as this group faced similar responsibilities back in 2019, too. Persistent high inflation, higher interest rates, and affordability challenges for a generation that is carrying peak household costs" may have also pressured credit scores for Gen X.
The 60+ group remained stable, wth an average credit score near 752 for seven years.
What gets paid first – and what's last?
Auto loan payments remain at the top of the pile of bills, even above the mortgage, which was second, FICO said. The auto 90-day-plus delinquency rate in 2024 to 2026 was 3.0% while the mortgage figure was 3.6%.
After cars and homes, people paid personal loans, credit cards and last, student loans. FICO noted that many Americans hadn't prioritized student loans over the last two years. COVID-related forbearance and on-ramp periods meant that many borrowers hadn’t made payments since 2020 (or ever, if they opened their student loan after 2020).
"With new payment plan options starting July 1, we will be monitoring whether student loans remain at the bottom of the payment hierarchy going forward," it said.
Are student loan borrowers doing better?
Data show student loan borrowers who have difficulty making payments are among those who struggle most financially.
Among adults with student loans to repay, 56% said repayment caused them to rely more heavily on credit cards or other loans to stay on top of bills over the last year, the reprt said. That includes 71% of Gen Z borrowers, 62% of Millennials, 48% of Gen X, and 29% of Baby Boomers.
Those with a recent student loan delinquency also experienced an average FICO Score drop of 38 points when compared to April 2025.
In contrast, borrowers who were previously delinquent, but have resolved or moved into a payment plan, have seen their FICO Score increase by 16 points, on average, year over year, while consistent payers have seen their average FICO Score increase by 4 points.
How can credit card balances rise but utilization fall?
The average credit card balance climbed 3.8% in the past year to $7,793, and yet, credt utilization eased from 35.5% to 35.2%, data show.
"The most telling number...is one that seems to contradict itself," FICO said. "Balances are going up while the share of available credit being used is going down, because credit limits are climbing faster than balances, mostly for higher-scoring consumers. That divergence is the affordability story in miniature: The consumers with room on their cards are being given still more room, while the strain shows up as rising balances rather than rising missed payments."
And the extra credit card balances are being carried primarily by the youngest and mid-career, or 'sandwich generation' simultaneously caring for kids and aging parents, FICO said. The average card balances are up about 18% since April 2019, but 18-29 year olds are up 26% and 45-59 year olds are up 25% since 2019.
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
This article originally appeared on USA TODAY: Avg FICO score steady but don't let it fool you. Americans are pinched
