Archive · 24 Sep 2025
Gen Z Credit Scores Drop Amidst Economic Pressures and Student Debt
Credit scores are like report cards for how well you handle money.
Recently, the average score has dropped a bit, but it's worse for young adults in their 20s, called Gen Z. Their scores are lower because they have a lot of student loans and haven't had much time to save money or benefit from investments.
They also face a tough job market.
If you pay your bills on time, it helps improve your credit score.
Average credit scores have decreased nationwide as of April 2025.
Gen Z credit scores have dropped by an average of three points.
Gen Z has an average credit score of 676, 39 points below the national average.
Student loan reporting is a factor in the score decline, particularly for Gen Z.
Experts advise that timely bill payments are crucial for credit score improvement.
- Who
- Gen Z and all Americans
- What
- Credit scores are dropping, particularly for Gen Z.
- When
- April 2025
- Where
- Nationwide
- Why
- Student loan reporting, difficult job market, and lack of savings impact Gen Z.
- National Average Credit Score (2025)
- 715
- Gen Z Average Credit Score
- 676
- Gen Z Score Drop (Year-over-Year)
- 3 points
- Percentage of Gen Z with Open Student Loans
- 34%
- Percentage of Total Population with Open Student Loans
- 17%