The past five years were anything but typical for borrowers.
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Credit scores rose during the early pandemic years, then declined more recently as household debt increased and missed payments became more common. Those changes have impacted how much borrowing costs today.
What Changed With Scores Over the Past 5 Years
A credit score is a number lenders use to help decide whether to offer credit and on what terms. Most scores range from 300 to 850, with higher scores generally meaning lower risk to a lender.
According to FICO, in April 2020, the average U.S. FICO score stood at 708. Six months later, in October 2020, it had increased to 713. By April 2021, the average score reached 716. That number held steady through April 2022, according to FICO.
The increase came during a period when credit card balances were lower and missed payments were less common, as spending slowed early in the pandemic and some households used stimulus payments to pay down debt.
In April 2023, the average score rose by two points to 718, fell to 717 by October and remained there through 2024.
Missed payments became more common during this period, according to FICO. By April 2024, more than 18% of consumers had at least one payment that was 30 days or more past due in the previous year, and nearly 8% had a payment that was 90 days or more past due in the prior six months.
In 2025, the average U.S. credit score declined further to 715 due to increased credit card utilization and an uptick in missed payments, partially due to the return of student loan delinquency reporting, per FICO.
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Why Those Changes Matter for Your Money
Looking at the credit score changes over the last five years helps explain why borrowing may feel more expensive for many people today. As missed payments and balances have become more common, so have declining scores, and those borrowers are more likely to face higher rates when applying for new credit.
However, changes in the national average credit score don’t directly affect individual credit scores. Instead, how you handle your credit does. Factors like payment history, amounts owed and the length of your credit history all make up your score. Even a small drop in your credit score can affect the rate you’re offered on a loan or credit card.
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This article originally appeared on GOBankingRates.com: Here’s How Credit Scores Have Changed Over the Past 5 Years — and What It Means for Your Money
