TOPEKA (KSNT) – Credit scores are dropping at a fast pace, the fastest since the Great Recession.
With rising interest rates and inflation, people are struggling to keep up with their credit card payments. Additionally, with the government restarting its collection on student loan payments, many people are having a hard time tracking their daily spending and what they owe.
“The problem that we’re seeing is that with the post-COVID resurgence of all of these student loan debt, people aren’t able to pay for their student loans now that they have to start making payments again, so that’s starting to create an issue,” said Jones Advisory Group President & Founder Megan Jones.
Washburn’s Crane Observatory hosting Observe the Moon Night
The national average FICO score has dropped two points this year, according to the credit scoring company. That’s the most since 2009. As far as keeping up with student loan debt, Jones says Kansans are struggling more than others.
“There’s 12.7 billion dollars of student loan debt in the state of Kansas,” Jones said. “When we look at the average student loan balance, it’s 33,000 dollars, is the average student loan in the state of Kansas. And then when we look at delinquency rate, we are in the top 10 states for delinquencies on student loans. 34 percent of student loans right now are delinquent in payments in the state of Kansas.”
The average credit score in Kansas is 722. So, during times when it’s already hard to pay the bills, what can you do to make sure your credit doesn’t suffer as a result? Jones says there are many factors to look at when building your score.
St. Francis Hospital in Topeka now using AI technology for lung cancer screening
“Just making sure you don’t have too much on those credit cards, making sure that you make your payments, try not to be delinquent, if you are, try to catch up right away,” Jones said. “All those things will help boost that credit score. The number one thing, though, is missing a payment. So, if you become delinquent on a payment, that can really drop your score, and it can happen fast.”
Jones tells 27 News there are multiple ways to keep up on your score for free. She says at least once a year, you can check your credit portfolio with agencies like TransUnion, Equifax and Experian.
For more local news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here.
