Gen Z Turns to Credit to Build Financial Profiles

Credit history shapes access to loans, borrowing limits and interest rates, making it especially important for Gen Z consumers entering the financial system with relatively thin files. Younger borrowers increasingly view responsible credit use and timely repayment as investments in their future financial standing, rather than treating cards solely as emergency funding or a way to cover routine purchases. Stronger scores can eventually improve access to mortgages, auto loans and other financing.

PYMNTS highlighted the trend on Nov. 7, 2025, citing PYMNTS Intelligence research showing that 21.7% of Gen Z consumers use credit products to build a financial and credit profile, a substantially higher share than among baby boomers. Improving a credit score has become the generation’s leading reason for seeking a new credit card, outranking rewards, convenience, cash-flow management and emergency spending as young consumers take a more strategic approach to borrowing.