Missouri, Georgia and Delaware see major declines while Utah, North Dakota and Iowa maintain stability with lower debt levels
A strong credit score can be the key to major financial purchases and affordable loans, but some states saw notable declines that created a “perfect storm” for Americans’ wallets, according to a credit repair expert.
On Thursday, WalletHub released its list of the states with the largest credit score decreases, and Micah Abigail LLC founder and social media influencer Micah Smith broke down what it means for those residents in the top – and bottom – states.
“What we’re seeing right now is a very clear trend, especially when it comes to missed student loan payments, and it’s having a real impact on credit across the country. Once payments resumed, we actually saw the national average credit score drop. Over 4.5 million Americans were caught off guard,” Smith told Fox News Digital.
“And from a credit specialist’s perspective, this is where the real problem comes in. . . . When you combine higher interest rates, no more free money in the economy and a student loan system that reports harshly and in ways most consumers don’t understand, it created the perfect storm we’re seeing now in consumer credit.”