The States With the Largest Credit Score Decreases, Ranked

Saying that it’s been tough to save money in recent years would be an understatement. The U.S. cost of living continues to increase, leading to the number of first-time home buyers going down across the country. And it doesn’t help that many recent college graduates are facing difficulty landing a job—due to the emergence of AI and other factors—and that health care costs, depending on where you live, can be very high.

And if you rely on a credit card, loans, or other ways of borrowing money, you’ll know that it becomes increasingly harder to add to your savings when you’re constantly paying the interest. This can lead to payments being missed, applying for additional credit cards, and a reduced limit on the credit you can spend. All of these reasons—and others—contribute to one’s credit score decreasing.

Missouri Ranks #1 as the State With the Largest Credit Score Decrease

According to finance company WalletHub, credit scores decreased in all 50 states from 2024 to 2025, at varying percentages. The platform pulled together their data from the third quarters of the past two years to determine the average per state, determining that Missouri had the largest credit score decrease year over year, while Utah had the lowest decrease—but still, of course, a decrease.

For Missouri specifically, it’s also reported that the state has the 16th-lowest line of credit of all 50, with an average of $2,622, while it is placed in 38th place for credit score average, with a 654. As for the state’s rank of financial distress, it ranks right in the middle at 25th.

It might be surprising that Missouri has the biggest credit score decrease year over year when some of its other rankings aren’t bad, though there are, of course, other facts that lead to a drop. As mentioned, failure to make payments on time, opening up more lines of credit, and a change in credit limit also impact credit scores, as does paying off a loan (yes, seriously), and closing a credit card. Yep, this system is complicated—to put it lightly.

The Full State-by-State Breakdown

Want to take a closer look at the data? Here’s a breakdown per state according to WalletHub’s reporting:

WalletHub analyst Chip Lupo provided a tip for increasing your credit score if you realize it’s dropped:

“If your credit score is low or has recently dropped, the quickest and best way to improve your score is to use a credit card regularly and pay the balance on time and in full every month,” says Lupo. “Even if you have a credit card that you don’t actively use, it will still gradually raise your credit score every billing period, as long as you keep the account in good standing. You should also strive to keep your credit utilization below 30% of your credit limit and work to actively pay down any long-term debts you have.”

While the United States is reportedly adding more jobs, that still doesn’t mean there’s more opportunity for everyone. As reported by CNBC, unemployment for Gen Z-ers is rising, seeing less demand for entry-level positions.

“For the first time in modern history, a bachelor’s degree is no longer a reliable path to professional employment,” chief economist at the Burning Glass Institute, Gad Levanon, told CNBC in November. Some factors to blame include companies turning to AI to carry out tasks, as well as budget cuts removing the need for entry-level roles.

No matter the reason for financial troubles, one thing is for certain: The country is struggling with credit scores, and it can take a very long time to mend that problem.