Micah Smith, the founder of Micah Abigail LLC and a well-known social media influencer, shared insights with Fox News Digital regarding the troubling trend of declining credit scores in various states. Experts in credit repair are noting a significant impact on Americans’ finances, suggesting that a high credit score is crucial for making major purchases and obtaining favorable loan terms.
According to WalletHub’s latest report, which highlights the states experiencing the steepest drop in credit scores, Smith broke down the implications for residents across these areas. He remarked, “What we’re seeing now is a very clear trend, especially if you’re behind on your student loans.” He noted that the resumption of loan payments has adversely affected average credit scores nationwide. “Over 4.5 million Americans were caught off guard,” he added.
Smith further elaborated, “From a credit expert’s perspective, the problems are stemming from rising interest rates, the end of easy money in the economy, and a student loan system that reports in a way most consumers don’t grasp. These factors have combined to create a challenging situation in consumer finance.”
1. Missouri
Missouri has reported the most significant average credit score decline in the country, dropping by 1.51% to an average of 654 in Q3 2025. Smith pointed out that this is not mere coincidence, accusing structural and policy-driven factors as the culprits. WalletHub indicated that Missouri’s credit behavior is troubling, citing an average credit card debt of $2,622, alongside its 25th position in terms of fiscal distress nationally.
2. Georgia
In Georgia, there was a 1.36% decrease in average credit scores from 662 to 653. This decline appears to be linked to a higher delinquency rate and outstanding bills. Smith commented, “Georgia serves as an important case study. The state’s ban on traditional credit repair may seem protective, but it often limits access to crucial education and advocacy for consumers who are unaware of how credit reporting functions.”
“Credit doesn’t repair itself. When individuals lack legal support in disputes or account reporting issues, they can remain stuck with poor credit for a long time,” Smith noted.
3. Delaware
Delaware’s residents saw their average credit score decrease by 1.2%, down from 669 to 661. WalletHub found that Delaware is among the most indebted states, which adds pressure on credit scores. The state also holds the seventh highest delinquency rate in the U.S.
On the opposite end, states like Utah, North Dakota, and Iowa have experienced minimal declines in credit scores, with reductions of 0.14%, 0.15%, and 0.28%, respectively. Smith explained that lower consumer debt in these states is likely a contributing factor. “Those managing their credit card usage well typically have stronger financial histories and more consistent payment behaviors,” he said, highlighting the importance of maintaining a good credit profile.
Smith noted that many people misunderstand how late payments can affect their scores. “We often wish for a quick recovery, but the reality is that rebuilding credit after missed payments or long periods of nonpayment is a lengthy process. It requires consistency and persistence,” he remarked.
Looking ahead to 2026, the outlook for credit scores may hinge on the job market. “We’re seeing job losses, and disruptions in income usually lead to dips in credit scores,” Smith stated. However, he added that those who save money and plan for emergencies are better prepared for such interruptions. “Trust in one’s financial management is crucial. It’s essential to engage in learning how to manage credit intentionally and build good habits,” he advised.
