Credello: A recent survey by found that 42% of Gen Z-ers don't know their credit scores. Does this mean a major problem for them when it comes time to borrow money, or does it signify a shift in how future generations think about credit?

Why doesn't Gen Z care about their credit scores?

Generation Z is the newest generation to enter the workforce and is taking a new perspective on how it views financial health. Previous generations saw their credit scores as a top priority for ensuring they could live comfortably.

But after watching the devastating economic fallout Millennials suffered, Gen Z has become more risk-averse to accruing debt. While their elders are searching for credit card refinancing and debt consolidation options, Gen Z'ers seem to be avoiding the idea of borrowing money altogether.

Consequently, the significance of a credit score doesn't hold as much weight, even though a low score can still affect your chances of renting a home and even entering some career fields. 

So which has to change, Gen Z's outlook on debt or the world they're entering?

Despite the interest, their credit scores are good

Interestingly, the data found in their surveys showed that their scores were surprisingly high despite Gen Z having less interest in their credit reports. 54% of those surveyed had credit scores between 799 - 850, averaging higher scores overall than Millennials and Gen X'ers. 

How the financial world is changing

It seems that the financial world is taking this priority shift from the younger generation seriously and is beginning to enact new ways to make credit reporting more relevant with the times:

  • The three main credit bureaus - Equifax, Experian, and TransUnion - have all agreed to remove some instances of medical debt from credit score calculations. 
  • "Buy Now, Pay Later" accounts, popular among younger consumers, will now be included in credit reports.
  • "Trended data" will take a higher priority in scoring calculations, giving your report a more thorough analysis of your buying and spending than the simple "snapshot" currently used.
  • Inclusion of rent, checking and savings account balances, and utility bill or streaming payments as optional data points. Currently, UltraFICO and Experian Boost are adding these as features to boost credit scores of those for whom mortgages and large personal loans are too far out of reach.
  • New scoring models with updated algorithms. Both FICO and VantageScores, the main scoring algorithms used by lenders, have been recently upgraded to account for economic changes and how people spend money.
  • New startup lending companies are leaning into the younger generation's financial habits by removing the significance of credit scores in their decision-making metrics and relying more on historical spending habits and the average amount of cash on hand. 

The bottom line

While there's still a long way to go before Gen Z's credit scores rival those of their elders, these changes show that the world is slowly starting to take them seriously and that it might be the corporations that need to adapt instead of the new consumers.

About Credello

Credello is a financial tech company offering personal finance tools that simplify financial decisions through personalized, on-demand recommendations — so users can borrow, save, or invest with confidence.

Credello believes that finding the right financial product should be as easy and interactive as online shopping, and we are on a mission to make that possible. For more information, please visit

Contact Information:
Keyonda Goosby
Public Relations Specialist
[email protected]
(201) 633-2125

Original Source: The Shocking Number of Gen Z'ers That Don't Know Their Credit Score
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