Gen Z Carries $3,500 Card Debt as Nearly Half Misunderstand Credit Scores
Updated
Updated · WNEM · Jul 29
Gen Z Carries $3,500 Card Debt as Nearly Half Misunderstand Credit Scores
2 articles · Updated · WNEM · Jul 29
Summary
Average Gen Z credit card balances have reached about $3,500, while nearly half of the cohort says it does not fully understand how credit scores work.
Payment history drives 35% of a FICO score, and a single late payment can remain on a credit report for up to seven years, affecting mortgages, car loans, rentals and some jobs.
Buy now, pay later plans, maxed-out cards and shifting balances to 0% cards without reducing debt can all damage credit or encourage overspending, financial planners say.
Experts recommend a baseline budget, on-time payments, low balances and regular credit-report checks; FTC research found 1 in 5 consumers had an error on at least one report.