Generation Z now holds the lowest average credit score of any generation at 676 according to FICO (down three points in a year), with 14.1% of Gen Z borrowers seeing their scores fall 50 points or more after student loan delinquency reporting resumed in February 2025. PYMNTS Intelligence research found that 55% of Gen Z consumers cite speed and easy approval as their leading reason for using BNPL while 43.7% cite credit limit and score management as their leading reason for using card installment plans, with credit card installments outpacing BNPL usage nearly 3-to-1 across the broader market. The split reflects a deliberate credit management strategy by a generation with a median credit limit of just $4,500 (compared to $16,300 for millennials), though 39% of Gen Z report late BNPL payments (the highest of any generation) and 25% are unsure of their next BNPL payment date.
