"Typically, younger consumers see the fastest year-over-year gains in credit scores as they build their financial histories. But this year, the opposite happened: Gen Z just experienced the steepest annual drop of any age group since 2020, with their average FICO credit score slipping three points to 676. That's 39 points lower than the national average of 715, according to a new FICO report."
"And that volatility is piling up. Gen Z is more likely to feel the sting of stubborn inflation and high interest rates. With less time to build savings, invest in the stock market, or benefit from home appreciation, they're already on shakier financial ground than their older counterparts. Add in the return of student loan payments and the rise of " doomspending "-the impulse to spend as a way with financial anxiety-and it's become a perfect storm."
Gen Z experienced the steepest annual drop in credit scores since 2020, with the average FICO score falling three points to 676, 39 points below the national average of 715. Young adults are borrowing to reach baseline stability rather than luxury, creating volatility in financial identities. Stubborn inflation, high interest rates, reduced time to build savings or benefit from home appreciation, the return of student loan payments, digital credit growth, and social-media-driven consumption pressures are compounding financial strain. Rising impulsive spending tied to anxiety increases risk. Without changes to spending and repayment behavior, the downturn could produce long-term negative consequences.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]