The Latest Personal Finance News for July 2025

Gas Prices Help Keep Inflation in Check

The consumer price index (CPI) came in lower than expected in May, in part due to plummeting gas prices, which fell by 12% from the same time last year.

Overall, prices increased 0.1% from April and 2.4% from a year ago. Additionally, the core CPI, which excludes volatile food and energy prices, rose 2.8% year over year.

While economists have worried about the potential impact of the Trump administration's tariff policy on inflation, the numbers have yet to show anything. In fact, at least one Federal Reserve governor has indicated support for an interest rate cut as soon as this month.

Why It Matters

The latest inflation numbers continue to be encouraging in spite of trade policy-related fears. While that aspect of the U.S. economy and its influence on inflation in the long term remains uncertain, Americans may start seeing lower interest rates in the near future.

What You Can Do

• Learn more about inflation and how it can impact you.
• Look for the next inflation report on July 15.
• Read up on ways you can fight inflation.
• Look for ways to reduce your risks when borrowing money.

FICO to Launch New Credit Scoring Models to Incorporate Buy Now, Pay Later

As buy now, pay later (BNPL) loans continue to increase in popularity, FICO has announced two new credit scoring models designed to incorporate BNPL data. The new models, named FICO^® Score^Θ 10 BNPL and FICO^® Score 10 T BNPL, are expected to launch in fall 2025. During the initial stage, the scores will be offered to lenders at no extra cost.

Why It Matters

More than 90 million Americans are expected to use a BNPL service this year, but many don't benefit from on-time payments. The new credit scoring models can help improve financial inclusion, particularly among borrowers who can qualify for BNPL loans but don't have access to other forms of credit.

That said, it's ultimately up to financial institutions to decide whether or not to use the new BNPL-focused credit scoring models in their lending decisions.

What You Can Do

• Learn about how BNPL loans work.
• Compare BNPL loans and credit cards.
• Understand how BNPL loans impact your credit.
• Get tips on how to improve your credit score.

Mortgage Rates Refuse to Budge

After briefly breaching the 7% threshold in January, the average interest rate for a 30-year fixed-rate mortgage has largely remained flat, ranging from roughly 6.6% to 6.9% in recent months, according to Freddie Mac.

Experts say that this is largely due to investor sentiment about trade tensions and economic growth.

Why It Matters

Mortgage interest rates have been uncomfortably high for nearly three years, disrupting the housing market and pushing mortgage payments to unaffordable levels for many prospective homeowners.

However, continued uncertainty means that potential homebuyers and existing homeowners looking to refinance may not get much relief anytime soon.

What You Can Do

• Learn how to deal with high mortgage rates.
• Read up on how mortgage interest works.
• Consider whether to buy a house when rates are high.
• Understand the pros and cons of refinancing a mortgage.

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.