Gen Zs in the US want to build credit, but have few options

When Mr Danny Benson started applying for apartments after graduating from Syracuse University in May, he assumed the hardest part would be finding the right location.

- Kailyn Rhone

He did not expect to be rejected before he got an opportunity to submit an application.

Since Mr Benson, 22, did not have a credit card during college, he had no credit history.

He tried to fix that by applying for a card with Discover in June. But the only option the bank gave him, he said, was a secured card, which requires a minimum security deposit of US$200 (S$260).

He said the deposit requirement established "a dynamic of distrust" and decided to opt out of applying for the secured card.

With no credit score and nowhere to live after graduation, he moved back home to his parents' place on Long Island, New York.

"It just feels like there's just no answer," said the public relations consultant at a communications firm. "And I don't know if it's just going to get worse now with everything changing in our economy."

Mr Benson's experience reflects a growing challenge among members of Generation Z, many of whom are trying to build independence in an economy that is stacked with financial hurdles.

Many in Gen Z are in their early to late 20s, prime years for establishing credit, according to financial experts. But instead of building a strong credit history, many are falling behind.

Pandemic-era spending, student loan delinquencies and inflation have left many young Americans vulnerable to long-term financial strain. Simultaneously, entry-level jobs are becoming scarcer, and beginner credit products are becoming harder to get.

As a result, Gen Z borrowers have seen the steepest decline in credit scores of any age group in 2025. Their average Fico (the well-known acronym for Fair Isaac Corporation) score fell to 676, well below the national average of 715, according to the inaugural Fico Score Credit Insights Report.