A healthy credit score can lead to better financial opportunities for people of all ages. That includes more opportunities for loans and credit—often at better rates. But a good credit score can also positively impact your chances at getting approved for a lease on an apartment.
In fact, even a Congressman in Washington, D.C., can't always score an apartment without a decent credit score—a fact the first Gen Z rep in the nation's capital learned firsthand.
Understanding how your credit might impact your financial life requires knowing about your credit in the first place. We conducted a survey to find out how Gen Z, in particular, understands their credit scores and whether those scores have impacted their financial opportunities. Here’s what we found.
Note: This survey was conducted for Credit.com using Suzy.com. The sample consisted of equal parts male and female respondents aged 18-25. The survey collected a total of 1,005 responses per question and results are not statistically representative of the general population. This survey was conducted in December 2022.
Close to half of adults in the Gen Z demographic don't know their credit score. According to our survey, men were more likely than women to not know their credit score. Around 48% of men said they didn't know what their score was at the time they answered the survey.
Knowing your credit score and keeping up with the information on your credit reports, even at an early age, is important. Some reasons to do so include:
More than 20% of Gen Zers have applied for credit cards and been denied. Women were a bit more likely than men to be denied—around 25% of women responding to our survey said they've been turned down for a credit card.
We also asked about denials for auto loans, apartments, student loans and even jobs:
Interestingly, among the Gen Zers who did know their credit scores, most have good scores, and many have above-average credit scores. That's true even for the individuals who said they'd been denied a credit card. Just over half of those who'd been denied a credit card—54%—said they had excellent credit, with a score between 799 and 850. And 72% had, at minimum, fair, or good credit.
Good credit doesn't actually cement your approval for a loan or a lease all on its own. Lenders and landlords often look at other factors, including your length of credit—called your credit history age—or rental history. If you haven't demonstrated that you pay your bills and rent responsibly for a lengthy period of time, lenders may be less likely to take a chance on you.
Income can also be a factor. Creditors won't lend to you and landlords won't rent to you without proof you have the income to make your payments on time. Many landlords look for renters who make two or three times the rent each month, for example.
Lenders may also consider your debt-to-income ratio. Even if you make more than enough to afford a debt, if you're already carrying a high debt load, you might not have enough cash flow to cover a new payment.
What is a good credit score? Generally, a score that's 670 or more is considered good, and the higher your score is, the more financial opportunities you might be able to take advantage of.
Establishing good credit takes time, especially if you don't have any credit at all and need to start from scratch. You'll need at least six months of positive credit history to make a decent impact on your score. Once you establish yourself, take the following steps to keep building your credit: