What’s the Average Credit Score for Gen Z?
Understand Gen Z's financial standing and gain practical insights into building, managing, and protecting your credit for a stronger financial future.
A credit score is a numerical summary of an individual’s creditworthiness. This three-digit number influences access to loans, credit cards, and housing. Lenders, landlords, and employers use these scores to assess financial responsibility. As Generation Z emerges as a growing economic force, understanding their financial behaviors and credit standing becomes increasingly relevant.
Understanding Credit Scores
Credit scores provide a snapshot of a consumer’s financial reliability. Two primary scoring models dominate the financial landscape: FICO Score and VantageScore. Both models range from 300 to 850, with higher scores indicating lower risk to potential creditors. Though their methodologies differ, both quantify credit management.
These scoring models assess several categories of financial behavior to determine a score. Payment history carries the most weight, accounting for 35% of a FICO Score. The amounts owed, or credit utilization, represent 30% of the score and reflect how much credit is being used compared to the total available credit. A lower utilization rate is more favorable.
The length of credit history, comprising 15% of the score, considers how long accounts have been open. A longer history of responsible credit use benefits the score. The types of credit used, or credit mix, account for 10%, indicating experience with various credit products like installment loans and revolving credit. New credit makes up the remaining 10% of the score.
The Average Credit Score for Gen Z
Generation Z, defined as individuals born between 1997 and 2012, is the youngest adult demographic. As of the third quarter of 2023, the average FICO Score for Generation Z was 680. This average places them within the “good” credit score range, which starts at 670 for FICO Scores.
The national average FICO Score across all generations in 2023 was 715. While Gen Z’s average is lower than older generations, credit scores increase with age. The average VantageScore for Gen Z was reported at 665 as of July 2025, which falls into the “very good” range for that scoring model.
Factors Shaping Gen Z Credit
Several circumstances contribute to Generation Z’s credit standing. Many individuals in this generation are new to the credit system, resulting in a limited credit history. The length of credit history is a significant factor in credit scoring, and younger consumers have less time to build financial records.
Student loan debt plays a role in the financial profiles of many Gen Z individuals. While their average student loan balances may be lower than previous generations at the same age, this debt can impact their payment history and overall credit utilization. The resumption of student loan payments can affect credit scores.
Gen Z’s emerging financial habits, including a preference for digital wallets and Buy Now, Pay Later (BNPL) services, may not contribute to traditional credit building. While convenient, these alternative payment methods do not report to credit bureaus, hindering the establishment of a credit history. Broader economic conditions, such as inflation and the cost of living, can affect their ability to manage existing debt and accumulate positive credit.
Strategies for Building Credit
Establishing and improving a credit score involves consistent, responsible financial practices. An effective method for those with limited credit history is to utilize secured credit cards, which require a cash deposit as collateral and allow the cardholder to build credit through regular payments. Similarly, credit-builder loans help individuals establish credit by making on-time payments before receiving the loan amount.
Becoming an authorized user on an established credit account can provide a boost to a credit score, as the primary account holder’s positive payment history reflects on the authorized user’s credit report. Consistently making all payments on time is important, as payment history is the most impactful factor in credit scoring. This includes credit card bills, loan payments, and other financial obligations.
Maintaining low credit utilization is another strategy, keeping credit card balances below 30% of the available credit limit. Over time, cultivating a responsible credit mix, involving a combination of revolving credit (like credit cards) and installment loans (like auto loans), demonstrates an ability to manage different types of debt effectively. Regularly checking credit reports for accuracy helps identify and dispute any errors that could negatively impact a score.
Monitoring and Protecting Your Credit
Actively monitoring your credit reports is a step in maintaining financial health and guarding against potential issues. Individuals are entitled to a free copy of their credit report annually through AnnualCreditReport.com. Regularly reviewing these reports allows detection of inaccuracies or fraudulent activity that could harm a credit score. If errors are found, they should be disputed directly with the credit bureau.
Credit monitoring services provide ongoing alerts regarding changes to a credit report. For security, fraud alerts can be placed on a credit report. A credit freeze offers a stronger layer of protection by restricting access to your credit report. Basic identity theft prevention practices safeguard personal financial information.