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The typical American household would need an additional $11,434 per year to maintain the same standard of living as in 2021. And nearly half of people with revolving credit card debt say spending on essentials contributes to their balance, according to NerdWallet’s annual report.
Now, for the first time in a decade, consumer credit scores are taking a hit. According to FICO, a data analysis company focused on credit scoring services, the national average FICO score was 717 as of October, down from 718 in July.
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. The reasons for this are an increase in unpaid bills and an increase in consumer debt.
“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 everyday expenses,” FICO said. wrote Kang Akari, senior director of scoring and predictive analytics at. Report.
Related: I went from massive credit card debt to a millionaire. 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). ~77) are 745 and 761 for the silent generation (78 and older), according to Experian data reported by CNBC Make It.
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