COLORADO SPRINGS, Colo. (KOAA) — Colorado’s average credit score fell about one percent over the past year, placing the state among those with the largest declines nationwide as Americans continue to rely on credit cards to manage higher costs, according to a new WalletHub report.
“Colorado is like right at a one percent drop in their credit score,” said Chip Lupo, writer and analyst at WalletHub. “And unfortunately, every one of the 50 states saw a decrease in their credit score.”
Colorado’s drop stands out compared with neighboring states such as Utah, which saw a decline of just 0.14%. Utah had the smallest drop.
The analysis compared credit score data from the third quarter of 2024 through the third quarter of 2025. Colorado’s average credit score now sits at 690, just below the threshold generally considered “good” credit.
“To put that in perspective, 700 is considered good credit. 750 is excellent credit. So 690 is on the cusp of fair and good credit,” Lupo explained.
A score in that range does not usually prevent consumers from being approved for loans or credit cards, but it can make borrowing more expensive.
“Chances are you’ll be approved for most types of accounts, but if you are approved, you’re going to pay for it in terms of a higher interest rate or if you’re approved for a credit card, a lower credit limit,” Lupo added.
WalletHub analysts attribute Colorado’s sharper decline to heavier reliance on credit amid lingering inflation pressures.
“Your average Coloradoan is probably using a little more credit than they should,” Lupo said. “When wages aren’t keeping up with the rise of inflation, people are using credit cards to pay for everyday expenses, and they’re not always paying that.”
Carrying balances at today’s high interest rates can quickly erode credit health, he said, particularly with average credit card rates hovering in the low 20 percent range.
“There’s no indications that Coloradoans are in one of the high-risk states in terms of delinquencies,” Lupo said. “But when you’re seeing a decrease in your credit scores, indications are that it might be trending that way.”
To reverse the trend, Lupo emphasized sticking to the fundamentals of credit management.
“The first thing I wanna do is maintain a solid payment history,” Lupo stated. “If anything else, then we don’t recommend it, but at least make that minimum payment on time every month.”
He also encouraged consumers to keep credit card balances low relative to their total available credit and to automate payments where possible.
“Just link your account to your bank account and set up an automatic withdrawal, automatic debit every month,” Lupo said as a tip.
Regularly reviewing credit reports for errors is another critical step, he added, noting that checking a report does not harm a credit score.
“You want to look for suspicious entries, maybe an account that you didn’t open,” Lupo said. “The more negatives that are on your credit report, that’s gonna affect your credit score.”
Lupo also cautioned against opening too many new credit cards in a short period, particularly heading into the holiday season, when consumers often seek additional credit.
“Every time you open a credit card, the credit card issuer is gonna pull your credit report, which is known as a hard pull,” Lupo warned.
At the same time, he advised against closing unused cards that do not carry annual fees, as they contribute to a consumer’s overall available credit.
For the full report, click here.
For more tips on improving your financial situation in 2026 from WalletHub, click here.
___
A big-name artist is bringing his Uptown Funk to the Olympic City
Paris, London, Chicago, and now Colorado Springs are some stops Bruno Mars will make on his upcoming "Romantic Tour."
____
Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.