Experian 2025 Consumer Credit Review

Average Credit Score in the U.S. Slips to 713

The average FICO^® Score^Θ in the U.S. declined to 713 in 2025, down from a record-high average of 715 that went back to 2023. Throughout the year, tariffs, affordability and economic uncertainty weighed on the minds of many consumers.

Average FICO^® Score Drops to 713

Learn more: What Is the Average Credit Score in the U.S.?

Average total debt balances increased by the slightest of margins, rising $388 (or 0.4%) to $105,444 in 2025. The average total debt balance grew by less than the rate of inflation, which was 3.0% for those 12 months. Excluding mortgage debt, the average debt balance fell 3.3% to $21,603.

Source: Experian data from September of each year

But as the average total debt load barely budged in 2025, the monthly payments to service existing debt—auto loans, credit cards and personal loans, for example—grew by 2.6%. While that growth is similar to the overall inflation rate of 3%, it still isn't welcome news to the consumers enduring them. One saving grace is that the rate of monthly payment increases has slowed significantly since 2022, when interest rate hikes sent monthly payments soaring.

Average Monthly Debt Payment Increase, 2020-2025

It also raises the question of whether some consumers have reached their capacity to assume a new and larger monthly payment. Based on recent reports of consumers balking at new car and home prices, more consumers are choosing to keep their current vehicle or residence for another year. Perhaps that's being done in the hopes of lower interest rates in 2026 making a replacement vehicle or homeownership work (more on that below).

Learn more: Americans' Average Monthly Debt Payment Increases

U.S. Consumer Debt Snapshot

Average balances rose modestly for most types of consumer debt in 2025.

Average mortgage balances, by far the largest liability for borrowers who have a mortgage, grew by 3.3% in 2025 despite record-low home sales. Curiously, the ICE Mortgage Monitor notes that more existing homeowners are choosing to refinance into higher APRs at greater rates in 2025. This perhaps suggests they were turned down for home equity line of credit (HELOC) or wouldn't qualify for a personal loan with as low a rate.

HELOC balances continue to grow faster than other loan types in 2025, increasing by 9.7% to $49,517 in 2025. That growth is even faster than the 7.2% increase seen in 2024. As tappable equity reached $15 trillion in 2025, according to ICE Mortgage, it has increasingly become an asset where responsible borrowers can find cheaper financing. Even better: From September 2024 to September 2025, the Federal Reserve reduced its target rate four times by a total of 1.25 percentage points, which in turn brought down APRs for existing HELOC borrowers and lowered borrowing rates for homeowners considering a new line of credit.

Source: Experian data from September of each year

Credit card balances grew slightly (0.6%) to $6,768 in the 12 months through September 2025. With average APRs still exceeding 22%, slowish balance growth suggests consumers appear to be revolving less new credit than in prior years. In addition, they may be shifting that card debt to cheaper alternatives like HELOCs or fixed-rate personal loans. And although average personal loan balances rose slightly to $19,333 last year, they're more popular than ever with consumers in 2025.

The 1.8% increase in average auto loan balances also suggests that many consumers have hit their ceiling, even as new auto prices have leveled off. (However, tariffs are another point of hesitancy among consumers in 2025.) The average auto loan balance is still slightly less than $25,000 in 2025—which is about half the cost of the average new car last year.

Mortgage balances climbed 3.3% in 2025 to $260,380, the same percentage increase Experian observed in 2024. With 30-year conventional mortgages in the 6% range for much of 2025, fewer consumers were willing or able to enter the mortgage market. However, those who did make purchases were still paying record-high levels in many U.S. housing markets last year, and even where prices are falling, homes are still relatively unaffordable for many with the interest payments current mortgage rates dictate.

Student loan balances declined 5.5% in 2025 due in part to continuation of some loan balance cancellations which occurred in 2024. Although averaging $33,255 in September 2025, loan balances are expected to increase due to changes in student loan payment and forgiveness plans instituted in 2025.

Average Credit Scores Down in Nearly Every State

Average FICO^® Scores declined in most—but not all—states last year. Louisiana and Washington, D.C., experienced the steepest drops, each falling four points in 2025. In contrast, Illinois, Maine and Vermont were the only states where average scores held steady.

These modest decreases indicate that, despite broader differences among states, many are seeing similar short-term pullbacks in average credit scores.

Average FICO^® Score by State

Loan Interest Rates Decline But Remain Elevated

Mortgage rates remained stuck in the 6% range for much of 2025, deterring many from considering a move or a home purchase last year.

Source: Federal Reserve, Freddie Mac; rates as of September of each year

Credit card balances flattened while credit card APRs declined modestly in 2025. Few consumers were likely to notice any effect the rate cut has had on their revolving balances however, as typical APRs remain well above 20% for most consumers.

Learn more: Compare Current 30-Year Mortgage Rates

Average Total Debt Levels Vary Greatly by State

As you can see by comparing the average debt map below to the average FICO^® Score map discussed previously, higher-dollar total consumer debt levels do not mean a lower (or higher) average FICO^® Score.

Average Consumer Debt Total by State, 2025

Credit Card Utilization Remains Unchanged, Delinquency Inches Up

Credit card utilization remained the same in September 2025 as September 2024 at 29.1%. Utilization, which measures credit balances against limits on revolving accounts (credit cards in this case) remained steady. The level of 30% is the point at which credit utilization starts to have a greater negative effect on credit scores.

Delinquency rates are up slightly in 2025, but are trending upward from historic lows toward their historical long-term averages.

Source: Experian data from September of each year
Note: Delinquency percentages based on number of accounts

Outlook for Consumer Credit in 2026

Vigilance is the watchword in 2026, according to several recent Experian surveys. One example: More than a quarter of millennials worry often or constantly about credit, with most other generations not far behind.

Question: How often do you worry about credit?

HELOCs Provide Financial Flexibility (For Those With the Equity to Access Them)

Earlier, we noted the increase in HELOCs relative to other consumer loan types in 2025, with no signs of slowing down. However, HELOCs are generally more available to homeowners who have years of built up home equity from which to borrow.

Compared to more ubiquitous forms of credit, such as credit cards (95% of consumers with a FICO^® Score have a credit card) and auto loans (61%), HELOCs are relatively niche: only 5.2% of consumers are carrying a HELOC balance, according to Experian data.

And apart from the implied wealth HELOC borrowers have in the form of home equity, they also have significantly higher average FICO^® Scores. So while having a home equity loan or HELOC does not mean a consumer is automatically a top earner, it's more likely HELOC borrowers have more financial room to maneuver than those without.

Consumer Confidence Fell Through 2025

Consumer confidence persistently fell throughout 2025, and the restraint in average loan balance growth for most types of debt seems to suggest that consumers either are not or will not assume additional debt unless absolutely necessary.

And when they are, borrowing may be more tactical. So although the balances of personal loans themselves aren't growing, more consumers than ever are taking out these fixed-rate loan products. Their lower and fixed interest rates can be preferable to variable-rate credit card debt.

Lenders Still Willing to Lend

At least according to recent Senior Loan Officer Opinion Survey results, banks aren't tightening their lending requirements. In fact, the Federal Reserve-conducted surveys found some lenders are even loosening auto loan requirements slightly.