CHARLOTTE, N.C. — The average credit score dropped for the first time since 2009, new analysis shows.
While the average score is trending down, a report from Money.com shows the officials numbers are only one point apart. The average person's credit score has been at 718 for more than a decade. It's down to 717 in 2024.
But that one point can have major implications. The amount of debit is going up and more borrowers are falling behind on payments. And it's not just this recent report backing up that claim.
Recent data from the Federal Reserve says more people are falling behind on car loan payments, too. Delinquencies across all credit products, including credit cards, hit their highest level in four years, according to credit scoring system Vantagescore. When you add that to stats showing households across the country are carrying a record amount of credit card debt, it means it's getting that much harder to pay off all those bills.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
The numbers paint a grim picture, but experts say there are three ways you can pay down that debt.
First, list out how much you owe and who you owe it to. Set your priorities by these factors: total debt and interest rates.
Next, focus on either the smallest amount of debt or the highest interest, which may help you pay off balances faster. The sooner you can pay bigger chunks of the principal, the better.
RESOURCE GUIDE: How to get ahead in 2024
The final tip is one you might not even know about. You can call and negotiate your interest rate with credit card companies. They won't always lower it, but all it costs is a phone call. As for what the conversation sounds like, make your case by noting how long you've been a customer and your on-time payment history.
Contact Kia Murray at kmurray@wcnc.com and follow her on Facebook, X and Instagram.
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.