The Generation That's Least Likely To Own A Credit Card

The role of debt in today's increasingly complex economic and job market has continued to come to the forefront of many generations' understanding of wealth, with interest rates at consistent highs. Debt.org says that an incredibly high 90% of Americans live with some sort of debt, regardless of generation, with nearly $1.18 trillion in credit card debt nationwide as of 2025. This is part of why fewer members of the youngest generation are owning credit cards.

21% of Gen Z individuals are holding off on buying cards, according to an MX survey of 1,000 Americans in 2023. This is in part what is causing Gen Z to have some of the lowest average credit scores for people by age. Additionally, the same survey found the generation to be wary of debt, with 35% saying they would rather pay in full than take out a loan and saying they don't believe loans are needed for major purchases. While Gen Z is still early in their economic impact, with many credit scores still developing, there are some possible trends that are adding to the lower number of cardholders. Part of this is that Gen Z considers you upper class if your salary is above a relatively low threshold.

Gen Z is defined as those born between 1997 and 2012, according to the Pew Research Center. Many of these individuals are just beginning to develop their own financial standing, separating from older generations. This is characterized by differing views on debt between Gen Z and their Gen X, and Baby Boomer parents. MX found that compared to the 27% of Gen Z who think lines of credit are necessary, 46% of the older generations believe credit is a powerful purchasing factor.

Gen Z adults are dealing with higher overall costs while holding entry-level positions, with the Consumer Price Index at an all-time high. Additionally, a 2025 Newsweek poll found that the average Gen Z adult carries $94,101 in debt. Four-year college prices are also at the highest they have ever been, leading to low enrollment among Gen Z and higher loans for those who do go. This means many Gen Z individuals already have high debt, leading fewer to take on credit card debt.

Another reason Gen Z may be avoiding credit is the high unemployment among young people. Without the wages needed to cover credit spending, unemployed Gen Z individuals are avoiding credit cards. This is because over 10% of young Americans were jobless as of July 2025, compared to the 4.8% national rate, according to the Bureau of Labor Statistics. This number is relatively high, even compared to the 12 U.S. states with the highest unemployment rates.