Impact of Job Market on Credit Score Trends in 2026
Micah Abigail LLC founder and @fitcreditdoctor Micah Smith speaks to Fox News Digital about why she’s largely against the implementation of a 50-year mortgage rate.
A strong credit score is essential for making significant financial purchases and securing affordable loans. However, recent reports indicate that several states have experienced notable declines in credit scores, creating a “perfect storm” for American consumers, according to credit repair expert Micah Smith.
On Thursday, WalletHub released its list of states with the most significant credit score decreases. Micah Smith, founder of Micah Abigail LLC and a prominent social media influencer, provided insights into what these changes mean for residents in both the top and bottom states.
“What we’re seeing right now is a very clear trend, especially regarding missed student loan payments. This has had 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.
THIS IS WHY YOU MAKE SIX FIGURES AND STILL LIVE PAYCHECK TO PAYCHECK
“From a credit specialist’s perspective, the real problem arises when you combine higher interest rates, the absence of free money in the economy, and a student loan system that reports harshly in ways most consumers don’t understand. This has created the perfect storm we’re witnessing in consumer credit,” she added.
A couple looks stressed over credit reports, as scores dropped nationwide, according to a new WalletHub report. (Getty Images)
1. Missouri
Missouri recorded the largest decline in average credit scores, dropping 1.51% to an average of 654 in Q3 2025. Smith attributes this trend to very real structural and policy-driven factors.
WalletHub highlights that Missouri’s payment behavior is a significant contributor, with median credit card debt at $2,622. The state ranks 25th nationally for financial distress.
2. Georgia
Georgia’s average credit score fell from 662 to 653, a decrease of 1.36%. The state’s above-average delinquency rate and high missed payments likely contributed to this decline.
“Georgia serves as a crucial case study,” Smith noted. “The state prohibits traditional credit repair, which may seem protective on paper but often limits access to education and advocacy for consumers who don’t fully grasp credit reporting.” She emphasized that without lawful support, individuals may remain stuck with credit damage longer, negatively affecting statewide averages.
3. Delaware
Delaware experienced a 1.2% drop in average credit scores, falling from 669 to 661. WalletHub reports that the state is among those accumulating the most debt, which pressures credit scores. Delaware also has the seventh-highest debt delinquency rate in the U.S.
In contrast, states like Utah, North Dakota, and Iowa saw minimal declines of 0.14%, 0.15%, and 0.28%, respectively. Smith explained that consumers in these states tend to carry lower debt than the national average, which positively impacts their credit scores.
Lower credit scores often stem from a lack of understanding regarding how missed payments and prolonged debt affect scores. Smith remarked, “There’s often an expectation of a quick recovery, but the reality is that rebuilding credit after missed payments and charge-offs is a long process. It requires consistency, patience, and persistence.”
The future trajectory of credit scores in 2026 will largely depend on the state of the job market.
Smith concluded, “We are witnessing job losses, and when income is disrupted, credit typically follows. However, those who have saved for emergencies are better positioned to weather such disruptions. While I remain optimistic, the patterns are clear: credit is cyclical.” She urged individuals to seek help and invest in understanding credit management, as it is a crucial aspect of financial health.
Micah Abigail LLC founder and @fitcreditdoctor Micah Smith speaks to Fox News Digital about why she’s largely against the implementation of a 50-year mortgage rate.
A strong credit score is essential for making significant financial purchases and securing affordable loans. However, recent reports indicate that several states have experienced notable declines in credit scores, creating a “perfect storm” for American consumers, according to credit repair expert Micah Smith.
On Thursday, WalletHub released its list of states with the most significant credit score decreases. Micah Smith, founder of Micah Abigail LLC and a prominent social media influencer, provided insights into what these changes mean for residents in both the top and bottom states.
“What we’re seeing right now is a very clear trend, especially regarding missed student loan payments. This has had 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.
THIS IS WHY YOU MAKE SIX FIGURES AND STILL LIVE PAYCHECK TO PAYCHECK
“From a credit specialist’s perspective, the real problem arises when you combine higher interest rates, the absence of free money in the economy, and a student loan system that reports harshly in ways most consumers don’t understand. This has created the perfect storm we’re witnessing in consumer credit,” she added.
A couple looks stressed over credit reports, as scores dropped nationwide, according to a new WalletHub report. (Getty Images)
1. Missouri
Missouri recorded the largest decline in average credit scores, dropping 1.51% to an average of 654 in Q3 2025. Smith attributes this trend to very real structural and policy-driven factors.
WalletHub highlights that Missouri’s payment behavior is a significant contributor, with median credit card debt at $2,622. The state ranks 25th nationally for financial distress.
2. Georgia
Georgia’s average credit score fell from 662 to 653, a decrease of 1.36%. The state’s above-average delinquency rate and high missed payments likely contributed to this decline.
“Georgia serves as a crucial case study,” Smith noted. “The state prohibits traditional credit repair, which may seem protective on paper but often limits access to education and advocacy for consumers who don’t fully grasp credit reporting.” She emphasized that without lawful support, individuals may remain stuck with credit damage longer, negatively affecting statewide averages.
3. Delaware
Delaware experienced a 1.2% drop in average credit scores, falling from 669 to 661. WalletHub reports that the state is among those accumulating the most debt, which pressures credit scores. Delaware also has the seventh-highest debt delinquency rate in the U.S.
In contrast, states like Utah, North Dakota, and Iowa saw minimal declines of 0.14%, 0.15%, and 0.28%, respectively. Smith explained that consumers in these states tend to carry lower debt than the national average, which positively impacts their credit scores.
Lower credit scores often stem from a lack of understanding regarding how missed payments and prolonged debt affect scores. Smith remarked, “There’s often an expectation of a quick recovery, but the reality is that rebuilding credit after missed payments and charge-offs is a long process. It requires consistency, patience, and persistence.”
The future trajectory of credit scores in 2026 will largely depend on the state of the job market.
Smith concluded, “We are witnessing job losses, and when income is disrupted, credit typically follows. However, those who have saved for emergencies are better positioned to weather such disruptions. While I remain optimistic, the patterns are clear: credit is cyclical.” She urged individuals to seek help and invest in understanding credit management, as it is a crucial aspect of financial health.
