"The average American's FICO score is now down to 714 - a two point decline over the course of the last year, reflecting a troubling trend in credit health."
"The share of Americans with credit scores of 750 and up now sits at 48% - up from just 43% in 2019, indicating a growing divide in creditworthiness."
"The K-shaped economy illustrates the wealth gap between the rich and poor, with inflation disproportionately affecting lower earners while high earners continue to thrive."
"Higher earners can lean on their investments, which have continued on a booming upward trajectory since 2020, while lower-income individuals face rising costs."
The average FICO score for Americans has dropped to 714, a decline attributed to the end of the pandemic-era student loan freeze and increased missed mortgage payments. The share of Americans with scores of 750 and above has risen to 48%, indicating a growing divide in credit scores. This reflects a broader K-shaped economy where lower-income individuals struggle while high earners benefit from stock market gains. Inflation exacerbates this divide, impacting lower earners more severely than wealthier individuals, and these trends may affect Gen Z's earning potential.
Read at Fast Company
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