The problem: Gen Zers care deeply about their credit scores—according to one survey, even more than their social media following. That’s because most Gen Zers believe it’s an important marker of their financial health.

But Bloomberg recently reported that Gen Z’s credit scores have taken the biggest hit of any age group in 2025.

How we got here: Federal student loan delinquencies began appearing on credit reports in February, following a nearly five-year pandemic-era pause on payments, per The New York Times. From February to April, approximately 6 million consumers had a student loan delinquency added to their credit file—many of them Gen Zers, who have the highest instance of student loans. This led to an average 69 point drop in credit.

Why this matters for banks: As Gen Zers look to their credit scores as a measure of financial success, rapidly dropping scores may drastically alter their perceptions of their financial health. Paired with delinquencies and rising debt, many Gen Zers may be actively looking for help to turn their finances around.

Financial institutions that offer credit-boosting products such as credit-building loans, secured credit cards, or reporting of nontraditional payments should advertise these to Gen Zers in particular—explaining how these products can boost FICO scores. So  customers have a better idea of what constitutes financial health, provide educational resources that help them assess how they’re doing against their financial goals in comparison to people their age.