Gen Z have proven themselves the financially-savvy generation once again by improving their credit scores more than all other age groups in the last five years, a new report found.
Their credit scores have risen 17 points since 2019, FICO reported Wednesday. By contrast, boomers and the Silent Generation had the lowest increase - 4 points - since pre-pandemic days. FICO classified Gen Z as those aged 18 to 29.
Overall, the study found that U.S.’s median credit score of 744 is the same as October 2025. Rates of personal and auto loan payments at least 90 days late also remained relatively stable.
But “stable” does not mean an absence of strained finances, FICO noted.
“That stability does not mean consumers are free from financial pressure,” the study said. “Housing and vehicle payments have risen faster than inflation, while bankcard and personal loan balances continue to grow.”
Only consumers aged 18 and older were included in the study, which pulled millions of credit files over multiple time periods to gather its data, a FICO spokesperson said in an email to The Independent.
It’s good news for Gen Z. Higher credit scores make it easier to buy a home, saving thousands of dollars in interest payments over the life of a mortgage and improving the terms of other loan and credit offers.
This generation’s improved credit scores speak to a wider philosophy of responsible saving and spending, according to other recent studies.
The youngest adults’ managed to increase their IRA contributions by 65 percent year-on-year, according to a study this month from financial services firm Fidelity.
To free up money for retirement contributions and other savings goals, Gen Z has made cuts in their social life. Around half spend nothing on romantic dates each month - and 1-in-4 don’t move relationships forward because of finances, a May study from Bank of America found.
Some 62 percent say they skip going out on the weekends because they don’t want to feel financial regret afterward, polling firm Harris Poll revealed in July.
Gen Z isn’t alone in its efforts to stay financially responsible amid tough economic times.
Consumers earning $100,000 or more are heading to discount stores such as Dollar General to save money on necessities, company CEO Todd Vasos said during a June earnings call.
Some drivers are putting off car maintenance so they can free up gas money amid high prices at the pump, and others are skipping employer-sponsored health care to save money on premiums.
And, shoppers have bought fewer groceries this year than last for six consecutive months, according to data Wednesday from consultancy Bain & Company.
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