MAP REVEALS AMERICA'S WORST CREDIT SCORE DROPS
New data shows average credit scores falling in every U.S. state over the past year, pointing to growing financial strain for many households, according to the personal finance website WalletHub.
A decline in credit scores can make everyday borrowing more expensive, affecting everything from credit cards to car loans. A strong credit score plays a central role in determining whether consumers qualify for loans and the interest rates on offer.
The findings show that average credit scores dropped in all 50 U.S. states between 2024 and 2025, suggesting more Americans are struggling to keep up as debt levels rise and late payments become more common. Credit scores are shaped largely by how consistently people make payments and how much of their available credit they use.
Credit cards are the most widely used financial tools in the country. According to the Federal Reserve Bank of New York, nearly three-quarters of Americans – 74 percent – have at least one credit card, and these cards now account for about 70 percent of retail spending.
At the same time, borrowing costs have climbed. The Federal Reserve Bank of St. Louis reports that average credit card interest rates are now above 20 percent, increasing the cost of carrying balances from month to month.
It comes as President Donald Trump has proposed a one-year cap of 10 percent on credit card interest rates, arguing that Americans are being “ripped off” by credit card companies.
Missouri
Missouri saw the steepest decline in average credit scores between the third quarter of 2024 and the same period in 2025, according to WalletHub. The state’s average score fell from 664 to 654, placing it in the “fair” credit range and ranking 38th nationwide.
While Missourians carry a median credit card debt of $2,622 – the 16th-lowest in the country – debt levels alone do not appear to explain the drop. Instead, missed payments may be a factor, as Missouri ranks 25th nationally for financial distress.
Georgia
Georgia recorded the second-largest decrease, with average scores slipping from 662 to 653, a decline of 1.36 percent.
WalletHub reports the state’s elevated levels of financial distress suggest that payment issues could be a key driver in the drop. Although Georgians are not increasing their debt at an especially rapid pace, the state’s above-average delinquency rate may be weighing on credit scores.
Delaware
Delaware experienced the third-largest year-over-year decline, with average scores falling 1.2 percent, from 669 to 661.
The state’s residents face multiple pressures; Delaware has a high share of people in financial distress and is also among the states adding the most new debt. Higher balances can increase credit utilization, which can hurt scores.
Payment history is another concern: Delaware has the seventh-highest debt delinquency rate in the nation, a significant factor given that on-time payments are one of the most important elements of a credit score.
Kansas and Minnesota
Kansas and Minnesota complete the top five states with the largest drops, recording declines of 1.18 percent and 1.17 percent respectively.
At the other end of the spectrum, Utah, North Dakota and Iowa recorded the smallest declines. Average credit scores still fell, though by less than one-third of a percent in each.
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2026-01-10T15:38:17Z
