According to a recent FICO report since last year The credit score of Americans has fallen to their lowest levels among the youngest generation.
According to the report, Generation Z decreased its credit score below 700 since the end of 2024this has been recorded as the lowest year -on -year fall since 2020.
The credit score is important since it determines the probabilities of your solvency for the payment of your invoices, The history of payments and credits, amounts owed, among others to decide whether or not to the borrower a loan or credit card is analyzed.
In the analysis, the FICO emphasizes that the borrowers of the Z generation have had difficulty maintaining their high credit score mainly due to their debts for student loans. The data indicates that about 14% observed their growing score up to 50% only last year.
However, there are some strategies that could help this generation to raise their credit scores. “Younger consumers usually have the greatest year -on -year increase in their score because they are the group with the lowest score. With proper management of your credit, they could easily experience a similar increase, says Fico.
How to improve credit score?
The first step is to make the payments of the doubts on time, in this case the payments could be considered automatically. It is important to know that late doubts or payments can remain up to seven years at the credit score.
The second advice given by loans is to limit the opening of new accounts, although opening bank accounts helps create credit history this can also be contradictory and affect their score, if done excessively.
One of the most important objectives if it seeks to improve the credit score is to maintain the use of credit in a medium to low range, but without reaching zero, it could avoid reaching 30%.
Finally, the Office for Consumer Financial Protection recommends reviewing its credit score often in this case existing platforms offered by these reports such as Annualcreditreport.com, Transunion, Equifax or Experian.
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