Personal finance

Is your credit score going down? Here’s how to turn it around, according to experts

Americans credit scores dropped over the past year as they have faced financial headwinds but none more so than student loan repayments starting again.

Greg Heilman

Update: Sep 23rd, 2025 12:51 EDT

Americans’ credit scores have dropped on average by two points to 715 since 2024 according to a recent FICO report. However, Gen Zers saw a three-point drop to 676, the largest decrease year-over-year of any age group since 2020.

FICO says that the downward trend is the result of “increases in utilization and delinquency, including the resumption of student loan delinquency reporting.” The latter weighs heavier on Gen Z borrowers among whom 34% have student loan debt compared to just 17% of the total population. FICO notes that just over 14% of Gen Zers saw their credit score drop by 50 points in the last year, “more than double the figure from 2021.”

However, there is a silver lining, “younger consumers typically have the largest average year-over-year score increase because they are the lowest-scoring group,” says FICO. With proper management of their credit, they could just as easily see a similarly large upward swing.

Experts’ advice to turn around credit scores

Credit scores are constantly changing as lenders update information on borrowers with credit agencies. One of the first steps is getting to know what your credit score is, which you can check for free once every 12 months from the three major consumer reporting companies (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com.

The Consumer Financial Protection Bureau recommends checking yours more often, which you can do by requesting reports from the three companies separately periodically throughout the year. However, you may be able to check your credit score for free more often when you visit AnnualCreditReport.com.

Experian offers some easy ways to boost your credit score. While there is no set timeline, the amount of time it takes depends on what is hurting your credit score and what you are doing to rebuild it.

Open a credit file

You cannot have a credit score without a credit file which can be done by opening new accounts with creditors that report to the major credit bureaus.

Do not miss payments

Making payments in a timely manner is the most heavily weighted part of your credit score accounting for 35% of the total. Missed payments can also stay on your credit score for up to seven years. You can look into scheduling automatic payments to avoid missing upcoming payments.

Reduce utilization of credit

The experts say not to reduce your credit utilization down to zero but that you should keep it in the low single digits according to Experian. Also avoid letting your credit utilization exceed 30%.

Limit the number of credit lines you open up

Finally, while you need to open accounts to create a credit file, limit how often you apply for and open new accounts. Each time you do so could lead to a “hard inquiry” which could dent your credit score slightly.