FICO is a credit calculating method which is stands for Fair Isaac Corporation. It is mainly used by companies who offer you a loan or a credit card, they used it to know how much you take time to pay back a loan. While the FICO Score is calculated using different pieces of credit data in your credit report.
The highest average score calculated by FICO is 716. Most of the consumers have good credit scores while half of the consumers possess a FICO credit score over 700. The main reason for the increment in credit scores is access to educational resources.
FICO Survey Report
As FICO survey find out that there is a little bit but yet an educational between the two generations. In a new FICO survey,
When it comes to credit education than Gen Z falls back behind other generations. While 29% of Gen Z consumers said they don’t know if they have credit scores or don’t know if they have one, compared to 8% of baby boomers who said the same.”
Credit Scores Uncovered: Consumer Relationships with their Scores.
According to Survey, 90% of Americans have at least know-how of credit score, but this number can’t divide among all generations. In the comparison of 66% of baby boomers, just 44% of Gen Z completely understand about credit scores.
Why most Gen Z are uneducated about credit score
Most Gen Z consumers have had less time to learn about credit scores as they recently turned 18. While among other generations Gen Z has the lowest average credit score which is 679. A positive and wise payment history can take years, which most Gen Z consumers haven’t had.