U.S. Credit Trends: What the Data Says About How Americans Are Borrowing

The credit data on American consumers tells a story of a post-pandemic normalization that hasn't been uniform across income levels, age groups, or debt types. Average credit scores hit record highs in 2021, driven by pandemic-era financial support and reduced spending. Since then, delinquency rates have risen steadily from their historic lows, particularly on credit cards and auto loans. The aggregate numbers obscure wide dispersion — prime borrowers remain in strong shape while subprime and near-prime borrowers are showing significant stress.

Credit Score Distribution

The average FICO score in the United States reached 718 in 2024 — the second year it's been at or above that level, and significantly higher than the 686 average recorded in 2009 after the financial crisis. Roughly 57% of Americans now have FICO scores above 700. However, score distribution is uneven by age and income. Gen Z and younger millennials have lower average scores than older cohorts — reflecting shorter credit history — and the score improvement trend that held through 2021 and 2022 has flattened or reversed for borrowers in the lowest income quartile as cost-of-living pressures have increased delinquencies.

Delinquency Trends

Credit card delinquency rates — accounts 90+ days past due — exceeded pre-pandemic levels for the first time in 2024, driven primarily by borrowers who accumulated debt during the pandemic and are now struggling to service it at post-rate-hike APRs. The New York Federal Reserve's Consumer Credit Panel shows auto loan delinquencies also rising above 2019 levels, with the stress concentrated in subprime borrowers who took on high loan-to-value loans at elevated rates in 2022 and 2023. Mortgage delinquencies remain near historic lows, reflecting the large share of homeowners who locked in low fixed rates before 2022.

Total Household Debt

Total U.S. household debt reached $17.8 trillion in late 2024, with mortgage debt representing the largest share at $12.6 trillion. Credit card balances crossed $1.1 trillion for the first time, a milestone that reflects both higher spending and the effect of carrying pre-existing balances at significantly higher rates than in 2021. Student loan balances have remained relatively stable as federal loan payments resumed in 2023 following the pandemic pause. Auto loan origination volumes have declined from 2021 to 2022 peaks as higher prices and rates have priced some buyers out of the new and used car markets.

What This Means for Individual Borrowers

Aggregate credit health data matters because it shapes lender behavior. When delinquency rates rise, lenders tighten underwriting standards, reduce credit limits on existing accounts, and become more conservative about new approvals — especially for borrowers in the near-prime and subprime tiers. If you're planning a major credit application — mortgage, auto loan, personal loan — applying during a tightening credit environment requires a stronger credit profile than the same application would have required in 2021. The direction of the data matters, not just the number.

For borrowers already in the system, rising delinquency rates in your peer group often precede credit limit reductions as lenders proactively manage portfolio risk. Maintaining low utilization and on-time payments is protective — not just for your score, but to avoid having issuers reduce your limits as a precautionary measure.