Banks Face New Gen Z Credit Test as BNPL Use Spreads

Generation Z now holds the lowest average credit score of any generation, 676 according to FICO , down three points in one year. That number dropped further after student loan delinquency reporting resumed in February 2025, with 14.1% of Gen Z borrowers seeing their scores fall 50 points or more. Against that backdrop, how Gen Z chooses to pay has become less about convenience and more about financial survival.