Gen Z is in the middle of a credit score crisis

In another sign that the economy may be faltering, average credit scores across the country have taken a nosedive in 2025, according to a report released last week. And Gen Z is one demographic that's particularly feeling the pain of slumping credit. People in this age bracket have seen their credit scores drop by an average of three points this year, and economists are worried the numbers could keep dropping if historical trends hold.

Much lower than the national average

The average American’s credit score dropped to 715 in April 2025, according to a report from credit scoring institution FICO. The average American’s score had been “717 a year earlier, marking the second consecutive year-over-year drop,” said Bloomberg . This is largely due to the “resumption of reporting student