Gen Z FICO Scores Exceed Millennial FICO Scores

  • December 18, 2019

CMG image

New data reveals that Generation Z (people born in 1995 and onward) have higher credit scores than both Millennials and Generation X.  According to LendingPoint, a personal lender, Gen Z had an average FICO score of 637, above Gen X’s average of 632, the Millennials’ average of 629, and even above the all-generation average of 634.  Only Baby Boomers had a higher average credit score of 645.  The report reviewed data from applications submitted between July 2018 to July 2019. 

Additionally, the report found that Gen Z had the lowest debt-to-income ratio.  This figure could be more reflective of the demographic’s age, as its less likely for a consumer to accumulate massive debt in their early 20s.  The national average DTI was 17% while Gen Z’s average DTI was just 9.9%.  Both total amounts owed, and length of credit history impact the FICO credit score, which may be surprising since Gen Z has the shortest length of credit history compared to other generations. 

The report stated the results are “especially interesting when you consider that how long you’ve had credit is a key factor when it comes to credit scoring.  Gen Z is off to a strong start in building their credit profile.”

Lenders look at your FICO credit score and your debt-to-income ratio to evaluate whether or not you will be a good candidate for a loan or a line of credit.  They want to see that you’ve been able to responsibly manage your existing debt and are capable of taking on additional debt.  Your FICO credit score is influenced by five factors: payment history, amounts owed, length of credit history, new credit, and credit mix.  Each factor influences your credit score and is weighted differently depending on its impact. 

If you’re looking to improve your credit score before applying for a loan, like a mortgage, take a look at the key components of your credit score. 

  • Payment History – Do you repay your debts on time? Is there a way to avoid late payments in the future, like setting up auto-payments?  If you have any derogatory marks related to late payments, have you checked into them to see if there are any mistakes?
  • Amounts Owed – Can you reduce your debt-to-income ratio? Would consolidating high interest debt help?
  • Length of Credit History – How long is your credit history?
  • New Credit – When was the last time you opened a new line of credit? Avoid opening any new lines of credit or applying for a new loan once you’ve started the mortgage application process.
  • Credit Mix – Do you have different types of credit like a car loan, student loans, credit card, or other loans?

If you have any questions about your credit score, debt-to-income ratio, or other financial factors before you apply for a mortgage, let me know.  There are different types of mortgage loans for all types of financial profiles to give everyone access to buying a home. 


Sources: HousingWire

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Broker and Lender #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at To verify our complete list of state licenses, please visit and NMLS Consumer Access (