The typical American family needs $11,434 more a year to maintain the same standard of living as in 2021. And nearly half of those with revolving credit card debt say spending on basic necessities has contributed to the their balance, according to an annual report from NerdWallet.
Now, for the first time in a decade, consumer credit scores are taking a hit. The national average FICO score was 717 in October, down from 718 in July, according to FICO, a data analytics company that focuses on credit scoring services.
Related: ‘Is this a sign of trouble to come?’: Gen Z is missing credit card payments, racking up debt
The last time scores fell was between April and October 2013, when they dropped from 691 to 690, according to FICO’s report, which cites rising missed payments and rising consumer debt as factors that contribute.
“The apparent cumulative impact of higher interest rates, elevated consumer prices and economic uncertainty has placed financial strain on especially those consumers who rely heavily on credit cards to cover daily expenses,” wrote Can Arkali, director senior of FICO scores and predictive analytics. the report.
Related: I went from substantial credit card debt to millionaire status. Here’s how I did it.
While an average consumer credit score of 717 seems high, it varies from generation to generation; The length of your payment history is an important scoring factor.
As of the second quarter of 2023, Generation Z (18 to 26) had an average credit score of 680, Millennials (27 to 42) had an average credit score of 690, Generation X (43 to 58) had an average credit score of 709, Baby Boomers (59 to 77) by 745 and the silent generation (78 and older) by 761, according to Experian data reported by CNBC Make It.