Student loan repayment and mortgage delinquencies drive decline of average FICO Score as broader credit conditions stabilize
FICO (NYSE:FICO), global analytics software leader, today released its Spring '26 edition of the FICO® Score Credit Insights report, showing the average U.S. FICO Score declined to 714, continuing a gradual downward trend since 2023, even though a record 48.1% of consumers now have FICO® Scores of 750 or higher.
The findings point to an increasingly segmented credit market consistent with a K-shaped economy, with a growing share of consumers maintaining strong credit profiles while challenges persist for lower‑scoring borrowers, particularly amid elevated inflation and higher interest rates.
With FICO® Scores used by 90% of top U.S. lenders, the findings from the bi-annual FICO® Score Credit Insights report offer critical insight into where risk is stabilizing, where pressure remains, and how lenders can identify responsible growth opportunities across an increasingly segmented credit landscape.
"The resumption of required student loan payments and a continued, modest rise in mortgage delinquencies nudged the average score slightly lower," said Ethan Dornhelm, head of scores analytics at FICO. "What makes this particularly interesting is that we're simultaneously seeing a record share of consumers demonstrating strong, consistent credit behaviors. The result is a credit market that's both more challenging for some and more rewarding for others—a dynamic that requires more nuanced strategies from lenders."
Key findings from the FICO® Score Credit Insights spring 2026 report:
- Average FICO® Score slips to 714: The national average FICO Score continued a downward trend, falling 2 points in the last year, driven primarily by resumed student loan delinquency reporting and a modest increase in mortgage delinquencies.
- Delinquencies stabilize across most products: Auto, credit card, and personal loan delinquency rates leveled off or improved, while mortgage delinquencies continued to rise to pre-pandemic levels.
- Student loan delinquency growth slows: After a sharp increase earlier in 2025 coinciding with the resumption of student loan delinquency reporting, student loan severe delinquency rates rose only marginally between April and October.
- Score distribution reflects a K-shaped economy: 48.1% of U.S. consumers now have FICO® Scores of 750 or higher, up from 43.3% in 2019. The share of consumers in the middle score ranges continued to decline as both high-score and lower score segments expanded, reflecting divergent credit outcomes.
- Gen Z leads credit card openings: More than 25% of Gen Z consumers with a valid FICO® Score opened at least one credit card in the past year, the highest rate of any age group.
Consumers remain focused on financial health despite affordability pressures
New consumer research conducted by The Harris Poll on behalf of FICO for the Spring '26 edition of the FICO® Score Credit Insights report shows Americans are highly focused on improving their financial health, with 83% saying maintaining or improving their credit scores is a priority for them this year. However, affordability challenges exist, with nearly one in four (24%) reporting they made less than their minimum payment or skipped a credit card or loan payment in the past 12 months due to inflation.
Despite these financial challenges some are experiencing, consumers are thinking strategically about credit decisions, with more than three-quarters (77%) factoring interest rates into the timing of credit applications and 29% saying they won't apply unless rates drop to a certain point. Yet while consumers demonstrate sophistication in timing applications around rates, fundamental knowledge gaps remain about the credit behaviors that actually qualify them for those better terms. Two-thirds (67%) either incorrectly believe income directly affects credit scores or acknowledge they are unsure whether it does—a misconception that could prevent consumers from recognizing that credit improvement is achievable through behavioral changes rather than higher paychecks. This knowledge gap underscores continued demand for transparency and education, particularly as 77% report that being able to continuously monitor their credit scores provides them peace of mind.
"The findings point to a shift in how consumers relate to credit—it's no longer passive, it's intentional," said Jenelle Dito, vice president of consumer empowerment programs and partnerships at FICO. "People are monitoring their credit and thinking strategically, but many still lack clarity on the fundamentals. Closing that knowledge gap is critical because consumers aren't just seeking better financial outcomes—they're seeking peace of mind, making this as much about emotional well-being as credit 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 trends in consumer credit behavior. 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 Credit Insights Lab.
For consumers looking to stay on top of their credit health, myFICO provides a trusted, free way to check and monitor their FICO® Score 8. For more information, visit www.myFICO.com.
Survey Method:
The consumer survey was conducted online within the United States by The Harris Poll on behalf of FICO from February 2-4, 2026, among 2,059 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 +/- 2.7 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 [email protected].
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 U.S. 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 100 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 US 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.
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