Americans are experiencing the biggest credit score decline since the Great Recession. FICO data shows a two-point drop in the national average this year. The drop reflects rising financial strain as more borrowers miss payments on car loans, credit cards, and personal loans.

Gen Z has been hit hardest, with a three-point average drop — the largest since 2020 among age groups.

"We've seen a K-shaped economy where those with wealth tied to stock market portfolios and rising home values are doing well and others are struggling with high rates and affordability problems," Tommy Lee, senior director at FICO, told CNN. 00:00/09:18 10

The outlook is worse for young Americans as student loan payments restart. FICO reports 34% of Gen Zers hold student loans — double the national average. Sin

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