25% of Gen Z Open New Cards as Average FICO Score Drops to 678
Gen Z aged 18-29 opened new credit cards at a 25% rate last year—the highest among generations—as their average FICO score dropped three points to 678, versus a 714 national average. Nearly half rely on cards to cover bills, pushing balances to $3,500 and sparking delinquencies as student loans restart.
1. Record Credit Card Applications
Over the past year Gen Z adults aged 18 to 29 applied for new credit cards at a 25% rate, the highest among all age groups, as they seek financial cushions with rising living costs.
2. Declining Credit Scores
Their average FICO Score fell three points to 678, placing them in the “fair” range and trailing the 714 national average by 36 points.
3. Elevated Balances and Delinquencies
Nearly half of Gen Zers use credit cards to pay bills, driving average revolving balances to $3,500 and triggering more delinquencies as student loan repayments resume.
4. Retirement Savings Rebound
Gen Z contributed 34% of all new IRA deposits between January and mid-March, outpacing millennials and Gen X, suggesting a renewed focus on long-term savings.