US consumers are feeling the stress of inflation, interest rates, report shows

Core Insights - U.S. consumers are experiencing increased financial stress due to inflation and higher interest rates, leading to a slight dip in the national FICO score by about 2 points [1] - The percentage of the population scoring between 600 and 749 points has decreased from 38.1% in 2021 to 33.8% in 2025 [1][2] Group 1: Consumer Credit Health - Gen Z adults have seen the sharpest decline in credit scores, primarily due to pressures from student loans [2] - Student loan delinquencies have reached a record high, with over 10% of 21 million monitored customers falling behind on payments [2] - Despite some banks reporting that consumers are in good financial health, there are signs of a cooling job market [3] Group 2: Average Credit Score - The average credit score remains strong at 715, near historical highs, indicating overall credit health [4] - The average FICO score is considered a lagging indicator of credit health, suggesting potential risks to future credit scores [4]