Late Student Loan Payments Dropped the Average Credit Score in the US, FICO Reports

Getty Images/CNET More than 8 million borrowers have seen their credit scores drop because of student loan delinquencies, dragging down the average credit score in the US, according to a FICO analysis released today. The average FICO credit score slipped to 715, a one-point decline from January and a two-point drop since April 2024, according to the Fair Isaac Corporation, one of the major credit models used by lenders. Credit scores are a "lagging indicator of credit health" and could drop further as more borrowers fall behind on payments, the report noted. Other factors, like a downturn in the economy, could also impact scores. If your student loan payments are at least 90 days past due, expect an impact on your credit, if you haven't seen one already. Missed payments can remain on your credit report for up to seven years. Lenders look at your credit score when you apply for a loan or other types of financing. The higher your score, the better your chance of getting approved and ... Read full article.