NEW YORK (AP) — Gen Z has seen its credit scores drop more than any other generation over the past year, largely because of student loan debt, according to a new report out this week. The total national average credit score dropped two points this year to 715, according to the report from credit scoring company FICO. But Gen Z's average score dropped three points to 676, the largest year-over-year decrease among any age group since 2020. A credit score is a mathematical formula that helps lenders determi ...

Group 1 - Swisscard has extended its partnership with FICO to enhance its credit limit strategies [1] - The collaboration will leverage FICO® Platform's AI-powered decision optimization capabilities [1] - The partnership aims to provide greater flexibility on spending limits while managing risk based on customer behaviors [1] Group 2 - Swisscard is recognized as the leading premium credit card provider in Switzerland [1] - The company has been utilizing FICO® Platform for onboarding and credit card limit management for several years [1]

The credit scoring company reported that the average national FICO score has slipped slightly, raising concerns about household resilience amid shifting economic conditions.The overall score has declined by around two points. While modest, the drop reflects broader shifts in consumer creditworthiness. In 2021, nearly 38.1% of the population held scores in the 600–749 range. By 2025, that proportion had fallen to 33.8%, indicating a narrowing of the middle ground between strong and weak borrowers.The most p ...

Core Insights - Borrowers are experiencing unprecedented levels of delinquency on student loan payments, leading to significant declines in credit scores [1][2][3] Delinquency Rates - Over 10% of consumers with student loans have not made a payment in over 90 days, with 3.1% of these borrowers (6.1 million consumers) reporting delinquencies from February to April [1][2] - The delinquency rate increased by 25% from 7.9% in April of the previous year to 9.8% in April of this year [2] Impact on Credit Scores - The average credit score for the 6.1 million consumers with delinquencies dropped by 69 points, falling below 600 [3] - Approximately 25% of these borrowers experienced a drop of more than 100 points in their credit scores [3] Payment Behavior - An additional 1.9 million consumers have not made any payments since October but have seen their credit scores rise by an average of 2 points [4] - In contrast, 12.9 million borrowers who made at least one payment since October saw a decline of 1 point in their credit scores [4] Demographic Insights - Generation Z has experienced the largest year-over-year drop in credit scores, with 34% of this group holding student loans, which is double the rate of the overall population [5] Regulatory Context - The impact of unpaid student loan payments on credit reports is being felt for the first time since the CARES Act allowed for a pause in payments until October 2023 [6] - Federal student loan delinquencies began appearing on credit reports in February due to a 90-day delay in reporting after payments are past due [7]

By Nupur Anand NEW YORK (Reuters) -Some U.S. consumers are showing increased signs of stress as inflation and higher interest rates are affecting affordability and leading to financial strain on borrowers, credit scoring company Fair Isaac Corporation, widely known as FICO, said on Tuesday. The overall national FICO score has dipped slightly by about 2 points. About 38.1% of the population scored between 600 and 749 points in 2021, while only 33.8% of the population ranked in these middle ranges in 2025. ...

Credit scores are dropping nationwide, reflecting struggles Americans are having to stay afloat financially, according to FICO. The national FICO score, or three-digit number used to summarize your credit report, fell two points to 715 from last year, the credit scoring services company said in its inaugural FICO Score Credit Insights report. The decline was driven by rising credit card utilization and a spike in missed payments, partly due to resumed student loan delinquency reporting, FICO said. Many c ...

Core Insights - The average active balance on UK credit cards has increased to £1,895, which is 5.1% higher year-on-year [1] - The percentage of the balance being paid off by customers has decreased by 7.7% year-on-year [1] - These trends indicate ongoing affordability challenges faced by UK consumers, highlighting a growing latent issue [1]

Fair Isaac Corporation (NYSE:FICO) is one of the stocks to invest in before they split next. On September 8, UBS raised the firm’s price target on FICO to $1,590 from $1,540, while keeping a Neutral rating on the shares. In Q3 2025, the company a strong performance driven by its Scores segment. The total revenue for the quarter was $536 million, which was a 20% increase year-over-year. The company’s performance was largely fueled by its Scores segment, which generated $324 million in revenue and marked a ...

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® ...

Core Insights - Fair Isaac, known for the FICO score, plays a crucial role in credit markets, with its business model being robust and profitable in the financial technology sector [1][4] - The company's stock has recently gained attention due to significant fluctuations, despite strong earnings growth [7][8] Company Overview - Fair Isaac is primarily recognized for the FICO score, which is utilized by approximately 90% of top U.S. lenders, establishing it as the standard in credit decision-making [4] - The company operates two main business segments: the FICO scores segment, which generates high-margin recurring revenue, and a software segment focused on risk management and fraud prevention [5][6] Financial Performance - In Q3 2025, the FICO scores segment contributed 60% of total revenue, while the software segment accounted for 40% [6] - Despite a 40% decline from its peak, the stock has shown continued earnings growth, with non-GAAP diluted EPS and adjusted EBITDA increasing by 37% and 32%, respectively, in the latest fiscal quarter [7][8] Market Dynamics - The stock's volatility has attracted market attention, with the current price-to-earnings ratio at 62 times its earnings per share, indicating high valuation concerns amidst macroeconomic uncertainties [8][9] - The long-term demand for FICO scores is expected to persist as lending activities continue, and the company is expanding into new areas like the FICO Marketplace [10] Growth Opportunities - Fair Isaac is positioned to benefit from trends in financial automation, AI-driven fraud detection, and digital credit decisioning, making its software increasingly integral to financial institutions [11][12] - The pressure on financial institutions to manage risk efficiently in a rising-rate environment aligns with Fair Isaac's strengths in analytics and predictive modeling [12] Competitive Landscape - The company faces risks from its reliance on large financial institutions and potential regulatory scrutiny that could challenge the dominance of FICO scores [13] - Competition from firms like VantageScore poses a threat to market share, and the stock's premium valuation leaves limited room for error [13] Investment Considerations - Fair Isaac is a significant player in global credit markets, with widespread adoption of its FICO scores and a growing software segment, providing multiple avenues for long-term growth [14] - The current stock volatility, combined with strong fundamentals, presents a potential opportunity for investors who believe in the company's growth trajectory [15]