Nearly a quarter of Americans say their credit scores took a hit this year—the No. 1 way to increase yours, according to an expert

Whether it from unexpected expenses or increased costs, many Americans say they are ending this year in a worse financial situation than last.

Nearly half of Americans believe their financial situation worsened this year, and 24% say their credit scores took a hit in 2025, according to a survey of over 1,000 U.S. adults released Dec. 16 by Intuit Credit Karma, a personal finance platform.

That’s not surprising, says Ted Rossman, a senior industry analyst at Bankrate who focuses on the credit industry.

“The cumulative effects of higher prices and higher interest rates have weighed on people,” and it’s showing up in data as well, Rossman says, citing increased late payment rates on loans, known as delinquencies.

Yet, he says it’s important to have a good credit score, not just because it allows you to access loans and credit cards, but also because landlords, utility companies, cell phone providers and even some employers may review your credit to assess your financial trustworthiness.