Why your credit score might be slipping even if you’re doing everything right

The K-shaped economy strikes again.

A new report from the Fair Isaac Corp. (FICO), creator of the credit score most lenders use, shows that the average American’s FICO score is now down to 714—a two-point decline over the course of the last year. 

The current slide in U.S. credit scores began in 2023, when the government ended the temporary pandemic-era freeze on student loan collection. Missed mortgage payments have also ticked up some, contributing to the slide in credit scores.