The FICO score on new auto loans fell seven points over the past year. Meanwhile, a quarter of consumers said they'd shop elsewhere if a dealership's online rating didn't match what they expected.
Driving the news: The Fall 2026 FICO Score Credit Insights report shows that consumers with existing loans have a score of 704, which is at the same level as April 2019.
The average is down just 1 point year-over-year.
Additionally, FICO showed a drop in the credit score on the average new loan from 723 in April 2025 to 716 in April of this year, because of a larger share of borrowers with scores below 580, according to Shams Blanc, VP and Head of Auto, B2B Scores at FICO.
“That reflects a shift in who is getting financed, with credit extended a bit further down the score spectrum,” Blanc told CDG News. “Two market forces sit underneath that shift. Some higher-score buyers appear to have sat out early in the year given vehicle prices and interest rates. And per Cox Automotive, more lower-score consumers are shopping, driven by affordability pressure.”
Student loans impacting scores: The resumption of student loan delinquencies being reported to credit bureaus in January 2025 has impacted the scores of millions of borrowers.
FICO reported that approximately 3.2 million consumers were 30 days or more behind on student loan payments.
Those with a recent delinquency have seen scores drop by 38 points.
Additionally, FICO found through credit file data that 20.2% of those borrowers with a student loan delinquency in the past year were delinquent on auto loans.
“Student loans represent the sharpest divide in consumer outcomes we're seeing,” Blanc said. “These consumers show elevated delinquencies across credit cards, auto loans, mortgages, and personal loans.
“From our consumer survey, 56% of student loan borrowers say repayment has pushed them to rely more heavily on other credit just to keep up. What's encouraging is that consumers who resolved a delinquency or moved to a different repayment plan gained an average of 16 points.”
Loan performance: Overall, FICO found auto loan delinquencies easing slightly, with the 30-day rate down from 2.7% last year to 2.6%.
That is well below the peak rate of 3.5% in April 2009, coming out of the Great Recession.
The 60-day delinquency rate is at 0.9%, and the 90-day is at 0.4%.
“Importantly, newly originated loans are performing well. The elevated delinquency in auto is concentrated in seasoned loans from earlier years, not the loans being written now,” Blanc said.
Consumers demanding transparency: Another report from FICO found that a majority of consumers are expressing frustration about their credit scores at the dealership not matching the score from an online monitoring app, credit card, or bank.
FICO noted only 14% of consumers stated that difference in scores wouldn’t bother them.
Additionally, 25% suggested they would shop around after that discrepancy, and 13% would walk away.
Blanc pointed out that dealers should explain how the scoring works early in the selling process to prevent surprises.
“The best time is at first contact, online or on the first inquiry, before a customer finds a specific vehicle,” Blanc said. “Early conversations do three things. They give the customer time to act. They protect the deal from a last-minute surprise in F&I. And they build trust before the numbers get emotional.”
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Bottom line: The credit scores of consumers are down slightly in the past year, but performance has remained steady on new loans.
Also, today’s shoppers arrive at dealerships with knowledge of their credit status but will need to be reminded that the scores to finance a vehicle are specific to auto lending.
“It may not match the number in a customer's credit score monitoring app, and that is completely normal,” Blanc said. “Different score version, different bureau, and different day can all mean a different number. Reviewing it together early means nothing catches anyone off guard later.”
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