Next Generation Wealth

A strong credit score can be the key to major financial purchases and affordable loans, but some states saw notable declines that created a "perfect storm" for Americans’ wallets, according to a credit repair expert.

On Thursday, WalletHub released its list of the states with the largest credit score decreases, and Micah Abigail LLC founder and social media influencer Micah Smith broke down what it means for those residents in the top – and bottom – states.

"What we’re seeing right now is a very clear trend, especially when it comes to missed student loan payments, and it’s having 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.

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"And from a credit specialist’s perspective, this is where the real problem comes in… When you combine higher interest rates, no more free money in the economy and a student loan system that reports harshly and in ways most consumers don’t understand, it created the perfect storm we’re seeing now in consumer credit."

Missouri’s average credit score in Q3 2025 was 654, a 1.51% decrease from the year prior. This marks the largest fall in average credit scores across all 50 states.

"It’s not random. There are very real structural and policy-driven factors at play," Smith said.

WalletHub reports that Missouri’s payment behavior drives this data, with median credit card debt at $2,622. The state also ranks 25th nationally for financial distress.

Georgia’s average credit score dropped from 662 to 653, a 1.36% dip. The state’s delinquency rate is above average and missed payments are high, which WalletHub notes likely contributed to the decline.

"Georgia is a particularly important case study," Smith said. "Georgia prohibits traditional credit repair, and while that may sound consumer-protective on paper, in practice it often does the opposite. It limits access to education, advocacy and remediation for consumers who don’t fully understand how credit reporting works."

"Credit doesn’t fix itself. And when people don’t have lawful support navigating disputes, errors, or even the timing of how accounts report, they tend to remain stuck with credit damage longer — which absolutely drags down statewide averages," she added.

Delaware residents saw a 1.2% decrease in their average credit score, going from 669 to 661. WalletHub reports that it is among the states adding the most debt, thus putting pressure on scores and higher balances. Delaware additionally has the seventh-highest debt delinquency rate in the U.S.

Conversely, states including Utah, North Dakota and Iowa saw the smallest declines at 0.14%, 0.15% and 0.28%, respectively.

"What you’re actually seeing in states like Utah, North Dakota and Iowa is that consumers tend to carry lower debt than the national average, and that really matters," Smith explained. "Generally speaking, people who manage their credit card utilization well are simply less risky on paper. They have stronger financial histories, better spending habits and more consistent payment behavior."

"That consistency gives them a buffer. So when interest rates rise and minimum payments increase," she added, "they’re better positioned to absorb that change without missing payments. Lower balances mean lower stress when the environment tightens."

Lower credit scores come down to a lack of understanding of how missed payments and prolonged debt actually impact a score, Smith added.

"There’s often an expectation of a quick recovery, and unfortunately, we’re the ones who have to be the bearers of bad news. The reality is that once you’ve had missed payments, charge-offs and extended periods of nonpayment, credit recovery is a long road. There are no shortcuts — it requires consistency, patience and [persistence] to rebuild the credit profile."

Whether scores continue to decline in 2026 largely depends on the state of the job market.

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"We are seeing people lose jobs, and when income is disrupted, credit almost always follows. That said, if someone was disciplined and saved for a rainy day, they’re going to be in a much better position to weather that kind of disruption," Smith said. "I am optimistic overall, but the patterns don’t lie. Credit is cyclical."

"If you don’t ask for help, and you keep things to yourself, you’re never going to get better," she continued. "Credit touches everything. It’s not optional. Invest in learning about it, manage it intentionally and build timeless habits. Your credit is your financial fingerprint — it follows you, it speaks for you, and it tells a story whether you realize it or not."

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Credit scores plummet across multiple states creating 'perfect storm' for American wallets, expert says Some states are seeing major credit score declines, but recovery is possible with the right strategies. Expert Micah Smith breaks down why Missouri and Georgia residents face hurdles.

For decades, Americans were given the same advice about money: Find a good financial adviser. Trust the person, not just the process.

That model worked when markets were simpler, tax laws changed more slowly, statements arrived quarterly and financial decision-making wasn’t so complex. But today, investors are navigating inflation, volatile markets, rising debt and rapid policy shifts — all while still relying on advice that’s often reactive, emotional and outdated.

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And now comes an uncomfortable truth Wall Street doesn’t love talking about.

Artificial intelligence may soon be a better financial adviser than most human beings.

And this comes from a person who has been giving financial advice to thousands of families over the past 34 years and also sees the handwriting on the wall for financial advisers over the next decade.

Not in theory. In practice.

Every market crash teaches the same lesson. People panic. They sell at the bottom. They chase hot investments after the run-up is already over. They invest in their friend’s new restaurant that doesn’t stand a chance. They buy cryptocurrencies nobody has ever heard of. Since the dawn of time, people have looked for a get-rich-quick scheme that will help them retire tomorrow.

This behavior alone destroys more wealth than taxes, fees or recessions combined.

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Human advisers aren’t immune either. They read the same headlines. They feel the same pressure when clients demand action. They try to keep up with the Joneses as well. Even the best intentioned advisers can let emotion creep into decisions.

AI doesn’t.

It doesn’t get scared. It doesn’t get greedy. It doesn’t care what social media, cable news or your neighbor is doing with their money. It follows data, probabilities and rules every single time.

Over the long run, discipline beats emotion. Just ask Warren Buffett. Machines are built for discipline.

Most Americans meet with their financial adviser once or twice a year. That’s like checking your smoke alarm annually and hoping nothing catches fire in between.

It can monitor your…

Spending patterns

Cash flow

Debt situation

Investment allocation

Risk exposure

Tax efficiency

…in real time.

When something changes, AI can react immediately — not at the next scheduled review. And most advisers aren’t looking closely at your debt, credit cards, household budget or the small decisions that add up in your financial life. That alone puts traditional advice at a disadvantage.

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High-quality financial advice has long been reserved for the wealthy. Everyone else often gets generic portfolios like a 60/40 allocation and product-driven recommendations loaded with commissions.

AI flips that model on its head.

It can deliver ongoing guidance, planning insights and behavioral coaching at a fraction of the cost — without commissions, quotas or sales pressure. Would you pay $19.99 a month for a 24/7 financial-coach subscription? You already pay $19.99 for Netflix, and it’s not getting you any closer to retirement.

That’s why everyday investors should start experimenting now. Tools like TheBuckGuru.com an AI-powered financial coach, allow people to stress-test decisions, improve financial habits and get real-time feedback without judgment or sales pitches. It can even develop actionable game plans that integrate directly into your calendar.

Here’s the part that makes some financial advisers uncomfortable.

The average financial adviser is replaceable. The good ones may not be, because they act as much more than advisers. They are financial therapists, marriage counselors, super-connectors and career counselors — and they still bring an art form to their work that AI simply can’t replicate today.

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Average advisers are not bad people, but much of what they do can be replaced because their advice, portfolios and service are very basic.

The advisers who will thrive in the future won’t fight AI. They’ll use it.

They’ll let technology handle monitoring, calculations and ex*****on while human advisers focus on what machines can’t do well right now: managing intuition and emotions. That includes major life transitions, complex career planning, family dynamics and stopping clients from making catastrophic emotional mistakes like pulling their money out at exactly the wrong time.

AI won’t eliminate financial advisers — we heard this story before with the robo-adviser.

But it will expose the ones who add little value beyond the 60/40 portfolio and paperwork.

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It will raise the standard for advice, lower the cost for consumers and force an industry built on tradition to finally modernize over the next decade.

For investors, that’s good news.

Because when it comes to your money, the smartest adviser in the room may soon be the one without a pulse — and in an age of emotion-driven mistakes, that may be exactly what your financial future needs.

Ted Jenkin is president of Exit Stage Left Advisors and partner at Exit Wealth .

AI financial advisors are coming and they may outperform the humans guarding your money A seasoned financial advisor with 34 years of experience argues AI may soon provide better financial advice than humans, citing emotional decision-making that destroys wealth.