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typical american family Additional fee of $11,434 per year required And nearly half of people with revolving credit card debt say spending on essentials contributes to their balance, according to the annual report. Nerd wallet.
Now, for the first time in a decade, consumer credit scores are taking a hit. The national average FICO score was 717 as of October, down from 718 in July. Ficois a data analytics company focused on credit scoring services.
RELATED: ‘Is this a sign of trouble ahead?’: Gen Z can’t pay with credit cards and is racking up debt
The last time the score declined was between April and October 2013, when it dropped from 691 to 690, according to FICO’s report. It cited an increase in payment delays and an increase in consumer debt as contributing factors.
“The clear cumulative effects of rising interest rates, rising consumer prices, and economic uncertainty are placing financial strain on consumers, especially those who rely heavily on credit cards for daily expenses,” FICO said. wrote Kang Akari, senior director of scoring and predictive analytics at. Report.
Related: I went from massive credit card debt to millionaire status. This is how I did it.
Even though the average consumer credit score of 717 may seem high, it varies by generation. The length of your payment history is one of the key scoring factors.
As of Q2 2023, Gen Z (ages 18-26) had an average credit score of 680, Millennials (ages 27-42) 690, Gen X (43-58) 709, and Baby Boomers (59). According to Experian data, 745 people and 761 people from the silent generation (78 years and older) CNBC Make It.