Here’s why the average US credit score is falling

New York Post - Apr 17th, 2025

The average U.S. credit score fell nationwide due to the resumption of federal student loan delinquency reporting on credit reports, according to FICO. The national average FICO score decreased to 715, a decline attributed to the end of the CARES Act's emergency pause on federal student loan interest and payments. The Department of Education had also implemented a one-year grace period, which ended, leading to the reporting of delinquencies. As a result, 2.7 million borrowers had new delinquencies reported, and the share of consumers with over 90-day delinquencies rose to 8.3% in February from 7.4% in January, surpassing pre-pandemic levels.

Tommy Lee, senior director of analytics and scores at FICO, highlighted the risk for 5.4 million borrowers who have yet to make payments since October 2024. Their credit scores could be further impacted if they do not make payments, potentially contributing to further declines in average FICO scores. However, there was also a positive note as some consumers improved their credit use, a key component of the FICO score, due to seasonal reductions in credit card balances. This improvement partially offset the score declines, reflecting the complex dynamics of consumer credit health in the U.S. as the effects of the pandemic's financial relief measures fade away.

Department Of Education Cares Act U.S. Credit Scores Fico Student Loan Delinquencies Tommy Lee Equifax Trans Union Experian

Story submitted by Fairstory

RATING

8.2

Fair Story

Consider it well-founded

The article effectively communicates the decline in the average U.S. FICO score and its links to the resumption of student loan delinquency reporting. It is accurate, timely, and of significant public interest, providing essential information for consumers affected by these changes. The reliance on FICO as the primary source ensures credibility, though the inclusion of additional perspectives could enhance balance and depth. The clarity and structure are strong, making complex financial topics accessible. However, the article could further engage readers by exploring more controversial aspects or including interactive elements. Overall, it serves as a reliable source of information on a topic of considerable relevance and impact.

Accuracy

The story accurately reports on the decline of the average U.S. FICO score to 715 in February 2025, supported by FICO's official data. It correctly attributes this decline to the resumption of federal student loan delinquency reporting, which was paused under the CARES Act. The story's figures on the percentage of consumers with 90+ day delinquencies and the number of borrowers affected by the resumption of delinquency reporting align with FICO's statements. However, while the story is largely accurate, it could benefit from additional verification of the broader context of credit trends, such as the impact of other economic factors on credit scores.

Balance

The article primarily focuses on the impact of student loan delinquency reporting on credit scores, providing a detailed analysis of this specific issue. However, it could be more balanced by including perspectives on other factors that might influence credit scores, such as changes in employment rates or broader economic conditions. The article does not show clear favoritism but could have included more diverse viewpoints from financial analysts or consumer advocacy groups to provide a fuller picture of the credit score landscape.

Clarity

The article is well-structured, with a logical flow that guides the reader through the main points. It uses clear and precise language, making complex financial information accessible to a general audience. The explanation of how FICO scores are calculated and the impact of student loan delinquencies is straightforward. However, it could benefit from a brief explanation of the broader implications of these changes for consumers.

Source quality

The primary source of information is FICO, a credible and authoritative source on credit scores. The article references statements from Tommy Lee, FICO's senior director of analytics and scores, adding credibility. However, the story relies heavily on FICO without incorporating additional sources, such as independent financial experts or consumer reports, which could enhance the depth of analysis and provide a broader range of insights.

Transparency

The article is transparent in attributing its main claims to FICO, clearly stating the source of its data. It explains the methodology behind FICO scores and the impact of student loan delinquency reporting on credit scores. However, it could improve transparency by discussing any potential conflicts of interest FICO might have in reporting these figures or by explaining why other factors influencing credit scores were not included.