Gen Z, your credit score called — and it wants a better relationship. Young Americans (aged 22 to 24) are kicking off their careers with more credit card debt than earlier generations, driven by sky-high housing and food costs. By the final quarter of 2023, their average credit card balance surged to $2,834 — a jump from $2,248 back in 2013. Thanks to inflation, credit cards aren’t just a convenience anymore; they’re becoming essential.

• Over the last two years, rising interest rates and delinquencies have dragged down credit scores — especially for Gen Zs with scores over 720, witnessing an average drop of 24 points.
• As of Mar. 2024, only a mere 3% of consumers aged 27 or below opened new credit card accounts — a decline from nearly 5% back in Mar. 2020, according to VantageScore.

Don’t get trapped: Millennials and Gen Z are getting caught in the “money dysmorphia” trap — where their misunderstanding of their financial situation leads them to make poor decisions. They’re so preoccupied with scraping together enough for homes and paying off student loans that they’re prioritizing immediate enjoyment over long-term savings — even if it means diving into debt.