The Economic Times

Credit scores drop amid loan payment struggles: Is rising student loan and mortgage delinquency hurting U.S. borrowers in 2026?

The average U.S. credit score fell to 714 in October 2025. This fresh data highlights a worrying shift in consumer finances. Credit scores drop amid loan payment struggles as borrowers face rising pressure from student loans and mortgages. After pandemic relief ended, millions resumed payments. Many are now missing deadlines. These missed payments are hitting credit reports fast. Student loan delinquencies have surged sharply in 2025. Mortgage delinquencies are also rising steadily. Higher interest rates and living costs add more stress. As credit scores drop amid loan payment struggles, borrowing becomes more expensive. Lower scores mean higher interest rates and fewer approvals. This trend signals deeper economic strain and slower consumer spending ahead.