Gen Z’s credit scores are dropping. Here’s what to do if yours is too

By ADRIANA MORGA

NEW YORK (AP) — Gen Z has seen its credit scores drop more than any other generation over the past year, largely because of student loan debt, according to a new report out this week.

The total national average credit score dropped two points this year to 715, according to the report from credit scoring company FICO. But Gen Z’s average score dropped three points to 676, the largest year-over-year decrease among any age group since 2020.

A credit score is a mathematical formula that helps lenders determine how likely you are to pay back a loan. Credit scores are based on your credit history and range from 300 to 850.

The report found that 34% of Gen Z consumers have open student loans, compared to 17% of the total population, and the decline in credit scores is prima