Financial wellness company Credit Sesame, the first platform to provide consumers free and ongoing access to their full credit information, today published the results of a comprehensive study on the financial literacy and well-being of younger generations, particularly their understanding of credit and other personal finance matters. In the age of viral trends and digital consumption, Gen Z is rewriting the financial script, proving that their credit story is far from conventional.
A new survey, conducted by OnePoll on behalf of Credit Sesame, illuminates the complicated love affair between Gen Z and credit, challenging stereotypes and ushering in a new era of financial consciousness.
Amidst the TikTok craze, the survey unveils a startling revelation: 92% of Gen Z prioritizes a credit score of 750 or higher over the allure of tens of thousands of social media followers. This shift in priorities challenges preconceptions, painting a portrait of a generation that understands the impact of a robust credit history on their financial well-being.
Amongst other findings, a survey of 500 Gen Z and 500 millennials conducted by OnePoll on behalf of Credit Sesame revealed:
- 66% of respondents believe that their credit score is a good measure of their financial health.
- One-third believe that age-old myth that checking your credit score will affect it and 19% couldn’t correctly match the definitions of debit and credit.
- 42% of respondents would rate their understanding of how credit scores work as “average to poor.”
- 82% of respondents admit they struggle to keep up with their friends’ saving and spending habits (35% of millennials struggle “very much” vs only 24% of Gen Zers).
- Credit card debt is impacting younger Americans’ larger goals, such as buying a house (35%), taking a dream vacation (29%) and saving for retirement (28%).
- 44% of respondents said they would leave their bank due to poor customer service, compared to only 15% for failure to reduce their carbon footprint.
Credit scores have been the gold standard for creditworthiness for decades, yet the traditional credit scoring methods have long been a source of confusion for consumers, made evident by the survey results showing 42% of respondents rating their understanding of how credit scores work average to poor. Credit Sesame breaks down the barriers for everyone to build better credit scores, especially people with low or limited credit history, commonly seen amongst young people working to establish strong financial health.
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