Generation Z and Millennials Credit

Generation Z, or Gen Z for short, is the demographic cohort born between 1997 and 2012. They are the youngest generation of consumers and have different attitudes and behaviors towards credit than their older counterparts. Based on the web search results, here are some possible insights into what Gen Z think about credit:

Gen Z are less likely to use credit cards than other generations. According to a Bankrate article. , only 33% of Gen Z have a credit card, compared to 55% of millennials, 68% of Gen X and 83% of baby boomers. One of the reasons for this is the lack of access to credit, as many Gen Zers are still in school or have limited income and credit history. Another reason is the fear of falling into debt, as many Gen Zers witnessed the financial crisis of 2008 and its impact on their families and communities. .

Gen Z are more interested in alternative payment options, such as digital wallets and buy now, pay later (BNPL) services. These options offer convenience, security and flexibility for online shopping, which is a preferred mode of consumption for Gen Z. According to a Self Financial article. , 60% of Gen Z use digital payment apps like Venmo or Cash App, and 48% use BNPL services like Klarna or Afterpay. These options allow Gen Z to avoid interest charges and late fees, as well as manage their cash flow better.

Gen Z are more aware of the importance of credit scores and financial education. Despite their low credit card usage, Gen Z are not indifferent to the benefits of having good credit. According to a CNBC article., 50% of credit-active Gen Z have prime or above credit scores (VantageScore 661+), surpassing millennials when they were the same age (39%). Gen Z also have access to more tools and resources to learn about credit and finance, such as free credit scores, credit score simulators and online courses. Gen Z are eager to improve their financial literacy and build their credit history in a responsible way.

In summary, Gen Z have a cautious and pragmatic approach to credit, preferring to use it sparingly and wisely. They are also open to new and innovative ways of paying for their purchases, as long as they offer convenience and control. Gen Z value financial security and education, and are willing to work hard to achieve their goals.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                       

Tik4tat and tik4invest Research TeamTeam