Recent reports indicate that U.S. credit scores have fallen at the fastest rate since the Great Recession, with the average FICO score dropping two points. This marks the second consecutive year of declining credit scores, largely attributed to rising inflation, higher interest rates, and a surge in student loan delinquencies. American consumers, particularly members of Gen Z, are facing significant financial stress as more borrowers struggle to make payments. The FICO Insights Report highlights these major shifts, revealing that many consumers are grappling with the challenges posed by increasing living costs and lingering debt.