Millennial and Gen Z credit scores are the latest sign of the ‘vibecession.’ Their credit scores will keep going up, Open Lending, TransUnion report shows
From Yahoo Finance: 2025-03-23 11:31:00
Credit scores are essential for Americans to access homes, cars, and lower insurance rates, despite being viewed as arbitrary and discriminatory. Millennials and Gen Zers are poised to move up credit tiers, with younger generations showing potential for upward credit mobility compared to older counterparts.
Millennials and Gen Zers face challenges in building robust credit files, as many lenders are hesitant to extend loans to those with thinner credit histories. However, these younger generations are strategic consumer segments, with the potential for higher-yielding loan opportunities and long-term customer loyalty.
In 2024, the average credit score in the U.S. was 715, considered at the top of the “good” credit band. Millennials average a credit score of 690, while Gen Zers come in at 680, both lower than the national average. Understanding factors that affect credit scores is crucial for financial planning.
Millennials and Gen Zers are positioned to improve credit scores more quickly than older generations, with 30% moving up credit tiers within two years. Starting with a blank slate and less debt, younger consumers can boost their credit scores rapidly by managing credit responsibly.
While younger generations have the potential for rapid credit score improvement, it is crucial to stay on top of debts and maintain responsible credit card use. Paying off credit cards in full each month and charging only what can be afforded are essential steps for long-term financial health. 1. The World Health Organization declares coronavirus a global health emergency. Cases continue to rise worldwide, with over 100,000 confirmed infections and 3,300 deaths. Governments are implementing travel restrictions and quarantine measures to contain the outbreak.
2. The stock market experiences a significant drop as fears of the coronavirus impact the global economy. Major indexes like the Dow Jones and S&P 500 see a sharp decline, leading to concerns about a potential recession.
3. Tesla announces record-breaking sales for the first quarter of 2020, exceeding expectations and driving the company’s stock price up. The electric car maker continues to see strong demand for its vehicles, particularly the Model 3.
4. The United Nations reports that climate change is progressing at a faster rate than previously estimated, with devastating consequences for the planet. Rising sea levels, extreme weather events, and biodiversity loss are among the key concerns highlighted in the report.
5. The U.S. presidential election heats up as the Democratic primaries move forward. Candidates like Joe Biden, Bernie Sanders, and Elizabeth Warren vie for the party’s nomination, with debates and campaign events drawing significant attention from voters.