Despite faltering credit scores, Gen Z is charging ahead—literally—opening credit card accounts at higher rates than any other generation. In the past year, more than one in four of American adults ages 18 and 29 got at least one new card, underscoring the tough choices and high-stakes gamble facing both young consumers and the issuers courting them.
The rush isn’t about perks or rewards. According to FICO, nearly 40% of Gen Zers are taking on new cards as a financial cushion.
“When faced with job loss or income reduction over the past 12 months, 48% of Gen Z and 43% of millennials relied on credit cards to make ends meet, compared to 25% of Gen X and just 7% of baby boomers,” FICO Vice President Jenelle Dito said in a statement.
Threats to Their Credit Scores
Meanwhile, their credit scores are slipping. As of late 2025, Gen Z has the lowest average credit score among all age cohorts at 678, down three-percentage points from the previous year. That’s well below the national average of 714, placing them in what FICO describes as the “competent” to “fair” range.
A key factor is the resumption of student loan payments, which has driven scores lower. FICO reports that nearly one-third of student loan borrowers have had a new delinquency recorded on their credit files.
Worth the Risk
Because the law prevents credit card companies from knowing how the age of their borrowers, issuers can only do so much to target, or avoid, Gen Z. Despite their higher risk, younger consumers remain a potentially lucrative market with the potential to become lifelong customers.
Card issuers can’t sustain a business by relying on 70-year-olds. They need to build portfolios around younger consumers, which means accepting some of the inherent risks of lending to this cohort.
“The whole goal is to get into the customer so you have cradle-to-grave relationships with them,” said Brian Riley, Director of Credit at Javelin Strategy & Research. “Once they get beyond all the nuances of the early phase of life, like family and kids, they’re going to start accumulating assets, whether it’s a 401(k) or a house. You can’t just knee jerk and shut them all down because their credit scores are running high.”
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