Core Insights - The national average FICO score in the U.S. has dropped to 715, marking a two-point decline from 2024 and the largest decrease since the Great Recession [2] - Gen Z borrowers, aged 18-29, experienced the most significant decline in credit scores, with an average score of 676, down three points year-over-year [2] Group 1: Credit Score Trends - The decline in the national average score is attributed to increased credit card usage and missed payments, partly due to resumed student loan delinquency reporting [3] - 34% of Gen Z consumers have student loan balances, compared to 17% of the overall population, indicating a heavier financial burden on this demographic [3] Group 2: Score Volatility - Gen Z shows above-average credit score volatility, with 9.8% of younger consumers experiencing a score increase of over 50 points, compared to 7.8% of the total population [4] - Conversely, 14.1% of Gen Z saw their scores decrease by over 50 points, compared to 10.1% of the overall population [4] Group 3: Knowledge Gap - A significant knowledge gap exists among Gen Z regarding credit scores, with 17% unaware of how to find their scores, compared to 8% of baby boomers [5] - Additionally, 21% of Gen Z feel they lack the tools and knowledge to improve their scores, which may lead to costly mistakes in managing their credit health [5]