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Gen Z FICO scores beat Millennials and Gen X

The youngest generation outperforms elders despite shortest credit histories

Of the three American generations following the Baby Boomers, the youngest is doing better at managing its credit.

Gen Z, meaning people born in 1995 or later, has an average FICO score of 637, above the all-age average of 634, according to a report from LendingPoint, a consumer lending platform.

Gen X, the 1965 to 1980 generation that followed the Baby Boomers, has an average FICO score of 632, the report said. Millennials, born between 1981 and 1996, have an average FICO score of 629.

“It seems Gen Z doesn’t want to find themselves in the position their parents were put in during the Great Recession, and they prioritize financial stability and consider purchasing decisions,” the report said. “This financially conservative mindset may be the driver behind Gen Zers’ higher credit scores than both Gen X and Millennials, despite their growing interest in debt.”

The average FICO score for Baby Boomers, born between 1946 and 1964, was 645, according to the report. The results are based on almost 5 million applications for person loans received by LendingPoint between July 2018 and July 2019.

Gen Z also had the lowest debt – not a hard thing to accomplish when you’re only in your early 20s. The DTI for Gen Z was 9.9%, compared with a national average of 17%, according to the report.

“As children, their formative years were dominated by the Great Recession and they watched as their parents dealt with financial uncertainty and job insecurity,” the report said.

Gen Z had the highest FICO score even though its members have the shortest credit histories.

The findings are “especially interesting when you consider that how long you’ve had credit is a key factor when it comes to credit scoring,” said the LendingPoint report. “Gen Z is off to a strong start in building their credit profile.”

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