Nearly Half of Gen Z Doesn’t Know What Affects Their Credit Score, According to New USAA Report

August 05, 2025 at 09:00 AM EDT

Study Reveals Gaps in Young Adults’ Credit Knowledge and Optimism for Financial Growth

Nearly half of Gen Zers (45%) lack a good understanding of the factors that affect their credit score, with roughly 1 in 5 (18%) having never checked their credit score at all, according to a new USAA report, Gen Z and the Path to a Perfect Credit Score.

The report highlights a gap among Gen Zers around attitudes toward credit scores and credit health, showing a generation that’s motivated yet underinformed. Some are taking proactive steps toward building strong credit, while many others struggle with anxiety, confusion, and financial pressures that impede their progress.

To continue raising awareness around the importance of credit health for Gen Z and all generations, USAA is dubbing today, August 5^th, as “Perfect Credit Score Day” (8/5 for 850 being the perfect credit score). The unofficial holiday aims to encourage everyone to take charge in their credit education and practice good credit habits.

Anxiety and the economy take a toll

For the most part, Gen Z knows that credit scores matter. While the majority – 75% – are aware generally of that their score is, far fewer know what goes into a good credit score.

81% of respondents know it is important to have a good credit score for their financial health
25% don’t know the range of their credit score
Just over half (55%) report knowing the factors that determine a strong credit score

For Gen Z, anxiety is a driving factor for staying in the dark on credit.

More than half (54%) of Gen Z reports having anxiety over checking their credit scores
- Of this group, 62% say that the anxiety stops them from checking their score altogether

When asked about barriers to better credit health, Gen Z largely pointed to the effects of inflation and debt. Respondents listed their biggest perceived barriers to achieving an exceptional credit score as: rising living costs (27%), spending too much (20%), credit card debt (17%), and student loans (17%)

“It’s no secret that Gen Z is facing financial stress, but what we’re seeing is that many are lacking a crucial understanding of how credit affects their long-term financial health,” said USAA Bank President Michael Moran. “We believe that financial security starts early and that, with practical tools and guidance, Gen Z can forge a strong path. That’s why we created ‘Perfect Credit Score Day’ – to serve as a compelling reminder of the importance of credit and to empower our members and others to improve their financial wellness.”

Despite headwinds, Gen Z is optimistic – and taking action

Even as economic pressures persist, Gen Z remains hopeful about the possibility of achieving an “exceptional” credit score.

76% feel that it is possible to reach an “exceptional” credit score (800-850)
67% are interested in learning more about ways they can improve their credit score
86% are open and willing to take action to improve their credit scores

Many Gen Zers are working to improve their credit scores. Whether its because of self-sufficiency or stubbornness, many respondents said they would rather go it alone than get help from someone they trust.

When asked about steps they would take by year end to improve their credit score, respondents said setting a budget (56%) and paying credit cards down (37%) were the two favored courses of action
In contrast, only 33% of respondents said they would look to get help from a parent or expert to help improve their credit score
Additionally, Gen Z would consider taking bolder action, including making all of their food at home (48%) and skipping vacation next year (35%)

In many ways, Gen Z is already succeeding in their credit aspirations. An analysis of USAA Bank data found that 69% of Gen Z members with a USAA credit card have a score of 670 or higher, considered to be a ‘Good’ score or above within FICO’s criteria.

Working together to improve credit health

USAA is committed to helping Gen Z and the next generation of members navigate the path to financial stability, partnering with its members to build and rebuild their credit through advice, tools and products throughout their financial journey. In celebration of “Perfect Credit Score Day,” USAA continues to roll out additional digital content, tools and tips to support better financial habits:

Make checking your credit score and credit report a regular practice.
Create an action plan for establishing, maintaining or improving your credit with resources such as those that USAA provides: usaa.com/buildcredit
Use a budgeting tool like USAA’s to make managing and tracking your spending easy.
Look for ways to reduce your expenses and use this extra budget to pay down debt.
Set up recurring payments for your bills to ensure payments are made on time.

Survey Methodology

Source: WME Insights Custom Dataset. Online survey among 1,000 U.S. adults ages 18-26. Fielded 6/16/2025. The figures have been weighted and are representative of all U.S. adults ages 18-26.

Data Methodology

Credit score data was derived from aggregated and anonymized USAA Bank member information from over 300,000 members age 18-26 who held at least one active USAA Bank credit card in July 2025.

About USAA

Founded in 1922 by a group of military officers, USAA is among the leading providers of insurance, banking and retirement solutions and serves more than 14 million members of the U.S. military, veterans who have honorably served and their families. Headquartered in San Antonio, USAA has offices in eight U.S. cities and three overseas locations and employs more than 38,000 people worldwide. Each year, the company contributes to national and local nonprofits in support of military families and communities where employees live and work. For more information about USAA, follow us on Facebook or X (@usaa), or visit usaa.com.

“USAA Bank” means USAA Federal Savings Bank.