Reported 1 day ago
U.S. credit scores have dropped for the second consecutive year, marking the largest two-year decline since the Great Recession. According to Fair Isaac Corp. (FICO), the average score fell to 715, a decrease of two points from the previous year. The ongoing economic challenges, exacerbated by high interest rates and inflation, are impacting borrowers differently, with younger generations, particularly Gen Z, experiencing significant credit declines due to student loan delinquency. The trend reveals a widening wealth gap, as those benefiting from the market gains contrast sharply with financially stressed borrowers.
Source: YAHOO