Name: Credit scores drop by the most since the Great Recession
Uploaded: 2025-09-18T09:58:49.000Z
Duration: 2 min 50 s
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The superlative

New data showing the credit scores are falling at the fastest pace in the US since the Great Recession.

To-infinitive

As Americans struggle to keep up with the rising cost of living, let's go to CNN's Matt Egan for this.

It's more evidence that some Americans they're hurting because of the high cost of living and because of the return of student loans.

So FICO had found that credit scores on average they increased every single year between 2013 and last year when they dipped.

And today FICO says there's an even bigger drop this year.

As you mentioned, the biggest since 2009 during the Great Recession credit scores.

They're still pretty high moving in the wrong direction, in part because more and more Americans are falling behind on their bills.

FICO says that delinquency rates are at or near the highest level since 2009 on car loans, credit cards and also on personal loans as well and Gen Z.

FICO says that credit scores for Gen Z down by the most of any age group since 2020 and part of that problem, of course, is student debt, right?

Starting in February, they started to report delinquencies on student loans for the first time since COVID and FICO has found that a record high 29% of people who have student debt have been reported as delinquent only 62% have actually made a recent payment and look at this.

Another 9% they could be reported delinquent soon because they have student debt but they have not made any recent payments and it's not just student debt, right?

You think about young people also contending with the worst job market for recent college graduates in years.

I talked to a 22 year old from Orlando who told me it took him 14 months and hundreds of job applications before he landed a job that wasn't a scam.

But he said he's not making nearly enough money to get by, let alone to chip away at his $35,000 in student debt.

So he said his credit scores have taken a drastic hit, and he's not alone.

FICO found that almost 2 thirds, 64% of Gen Z student borrowers.

They've got to rely on credit card than buy now pay later and also personal loans just to pay their bill.

So John, I do think this is just more evidence of the K shaped economy, right?

Where a lot of people who have money in the market, they own their home.

They're doing OK, others are not, and it just shows this disconnect where you got Wall Street.

There's all this euphoria Main Street, though a lot of people are struggling.

Just to be clear, when you have you, when you don't have a good credit score, your credit credit score drops.

Alright, Madigan, thank you very much for that.

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Credit scores drop by the most since the Great Recession

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