Americans’ average FICO credit score remains steady, but underlying affordability pressures are shaping financial decisions, according to experts. Currently, the average FICO score in the U.S. is 714, holding steady from October 2025, despite a one-point drop from the previous year.
A FICO credit score is a crucial three-digit number that reflects the information in your credit reports. It takes into account your payment history, amounts owed, credit history length, new credit, and credit mix. Lenders use this score to determine your eligibility for mortgages, credit cards, loans, and other financial products.
The latest FICO® Score Credit Insights report serves as a snapshot of consumers’ credit health in the face of rising costs associated with auto loans, housing, and credit cards, which are putting pressure on household budgets.
Affordability remains a significant issue for many Americans, especially for lower-scoring and thin-file borrowers. The report reveals that the average monthly payment for first-time homebuyers has surged by 57% since 2019, while mortgage balances for borrowers with scores below 620 have increased by 43% since April 2019. Auto loan balances for lower-scoring borrowers have also risen by 36%, with delinquency rates exceeding 90 days on the rise in the lowest-score bands.
Tommy Lee, a senior director at FICO, noted that while the national average FICO score has remained stable, it does not necessarily indicate an easier financial environment for consumers. Instead, it reflects the increased costs across various credit products, such as mortgages, auto loans, and credit cards. Despite the rising costs, delinquency rates have either improved or remained stable across major loan types, highlighting consumers’ financial discipline under pressure.
The FICO report also highlights that delinquency rates have remained stable or improved across most products. Mortgage borrowers in early-stage delinquency decreased from 1.42% to 1.35% year over year, while 30-day auto delinquency improved by 5 basis points to 2.6%.
Recent data from the Federal Reserve Bank of New York further emphasizes the financial challenges Americans are facing. Credit card balances have increased by $21 billion, reaching $1.26 trillion, a 1.7% jump from the previous quarter and nearing last year’s high of $1.28 trillion.
To cope with rising costs, many Americans are turning to buy now, pay later services and seeking financial support from others. Despite these challenges, nearly three-quarters of Americans monitor their FICO scores multiple times a year, indicating a strong focus on financial health.
Younger consumers, in particular, are actively managing their credit, with 74% of Gen Z consumers relying on some form of financial support, often from parents. Housing costs have made it harder for 68% of Gen Z homeowners to keep up with other expenses, underscoring the ongoing financial strain faced by many.
Maintaining a healthy FICO score is essential for financial stability. Most creditors consider scores between 670 and 739 as “good,” with higher scores indicating lower-risk applicants. To build and maintain a healthy score, making payments on time, reducing credit utilization, and limiting new credit applications are key strategies recommended by FICO.
In conclusion, while Americans face affordability challenges and rising costs, maintaining a healthy FICO score and practicing financial discipline can help navigate these financial pressures effectively.
