Money Gen Z Credit Card Debt Habits and Statistics
Gen Z are becoming an increasingly important group in the credit market, using credit cards for everyday spending, building credit, and managing short-term finances.
A Bankrate Survey shows that 72% of Gen Zers have put off at least one thing because of their credit card debt. They have delayed things like emergency savings (27%), helping family and/or friends (26%), and investing (24%). [1] Bankrate. “Credit Card Debt Report: How Credit Card Debt Pauses Major Life Decisions.” Accessed April 2, 2026. https://www.bankrate.com/credit-cards/news/credit-card-debt-report/#credit-card-debt-pauses-major-life-decisions
To better understand how credit card debt specifically affects Gen Z and their credit card behaviour, a survey of 1,469 adults on behalf of Self examined how many have credit cards, how many they hold, how they manage them, and the impact on their lives.
Key statistics
- Gen Z has the lowest average credit card debt at $3,493, compared to Generation X ($9,600), millennials ($6,961), and baby boomers ($6,795) according to Experian data as of June 2025.
- Most Gen Z (79.4%) open their first credit card between 18 and 25, with 42.6% doing so between 18 and 21.
- Among Gen Z credit cardholders, more than two-thirds (66.4%) have more than one credit card, with cardholders holding an estimated average of 2.8 cards each.
- Credit cards play a central role in spending, with 61.6% of Gen Z using them for at least half of their purchases, most commonly for 50–74% of spending.
- Social media influences 88.9% of Gen Z respondents in how they use credit cards and manage debt, even though parents and family are their most common sources of financial knowledge (39.8%).
- Credit card rewards are widely used, with 88.3% of Gen Z cardholders reporting they have a rewards card, more than double that of non-Gen Z (42.8%).
- In terms of repayment behaviour, 38.3% pay their full balance each month, while 20.2% pay only the minimum, and 82.4% have paid a late fee at least once.
- Despite this, 83.3% of Gen Z say they are confident in managing credit card debt, even though 83.8% report it has impacted their mental health.
Gen Z has a lower average credit card debt
According to Experian data as of June 2025, Gen Z has a lower credit card debt average ($3,493) than Generation X, millennials, and baby boomers. Generation X holds the highest average balance at $9,600, followed by millennials ($6,961) and baby boomers ($6,795), while the Silent Generation has slightly lower balances at $3,445.
As the youngest generation of adults (born between 1997 and 2012), Gen Z has had less time to accumulate debt, which may contribute to their comparatively lower balances. [2] Experian. “Average Credit Card Debt by Age.” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/
| Average credit card debt by generation | |
|---|---|
| Generation | Average credit card debt |
| Generation Z | $3,493 |
| Millennials | $6,961 |
| Generation X | $9,600 |
| Baby boomers | $6,795 |
| Silent generation | $3,445 |
Source: [2] Experian. “Average Credit Card Debt by Age.” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/ as of June, 2025
How many Gen Zers have credit cards?
The majority (73.4%) of Gen Z respondents said that they have at least one credit card, while a further 7.7% reported having access as an authorized user, meaning that eight in ten Gen Zers have access to credit card spending.
More than two-thirds (66.4%) of Gen Zers with credit cards have multiple accounts
Of those surveyed, more than two-thirds (66.4%) of Gen Zers with a credit card have more than one account, and among these cardholders, the average number of credit cards is 2.8.
When compared to respondents from other generations, who hold an average of approximately 2.6 credit cards, Gen Z’s card ownership is broadly in line, despite being earlier in their credit lifecycle.
The most common range is two to four credit cards, with over half (55%) falling into this group. A further 10% have between five and seven cards, while 3.9% have between eight and ten, and 1.6% report holding more than ten cards.
A significant share still has just one card, with over a quarter (28%) reporting a single credit card.
| Number of credit cards held by Gen Z cardholders | |
|---|---|
| Number of credit cards | Percentage of Gen Zers |
| 1 | 33.6% |
| 2-4 | 54.1% |
| 5-7 | 9.3% |
| 8-10 | 2.6% |
| More than 10 | 0.4% |
At what age does Gen Z get their first credit card?
Gen Z typically begins building credit at a young age, with the majority (79.4%) opening their first credit card between the ages of 18 and 25. The most common age range is 18 to 21 (42.6%), followed by 22 to 25 (36.8%).
A smaller share (10.7%) begins even earlier as authorized users under the age of 18, while 10% open their first credit card between the ages of 26 and 29.
| The age at which Gen Z gets their first credit card | |
|---|---|
| Age of first credit card | Percentage of Gen Zers |
| Under 18 (as an authorized user) | 10.7% |
| 18-21 | 42.6% |
| 22-25 | 36.8% |
| 26-29 | 10.0% |
How Gen Z use credit cards
Gen Z rely heavily on credit cards as part of their everyday spending habits, using them across everything from routine purchases to online shopping. Not only are credit cards used frequently, but they also make up a significant share of spending. On average, they account for around half (approximately 51%) of total purchases, based on midpoint estimates assigned to each reported usage range and weighted by the proportion of respondents in each group.
How often Gen Z use credit cards
Gen Z use their credit cards more frequently than other generations, with 44.4% saying they use them a few times a week and a further 20.6% using them daily. A further 23% of Gen Z use their credit cards a few times a month, while only small shares report rarely using them (4.5%) or never using them at all (7.6%).
In contrast, only 25.8% of non-Gen Z respondents say they use their credit cards a few times a week, while the most common response (37.7%) is never using a credit card.
| How frequent Gen Z use their credit card | |
|---|---|
| Frequency | Percentage of Gen Zers |
| A few times a week | 44.4% |
| A few times a month | 23.0% |
| Daily | 20.6% |
| Never | 7.6% |
| Rarely | 4.5% |
Percentage of purchases made using credit cards
Credit cards make up a significant share of spending for many Gen Z users. Nearly half of those with credit cards (49.7%) say between 50% and 74% of their purchases are made using a credit card, while a further 11.9% use credit cards for more than 75% of their spending.
In total, over half of Gen Z (61.6%) rely on credit cards for at least half of their purchases. In comparison, just 40.1% of non-Gen Z respondents report using credit cards for more than half of their spending, with the most common response being less than 25% (39.2%).
| The percentage of purchases made using credit cards by Gen Z | |
|---|---|
| Percentage of total purchases | Percentage of Gen Zers |
| 50-74% | 49.7% |
| 25-49% | 28.2% |
| 75% or more | 11.9% |
| Less than 25% | 10.2% |
What Gen Z use credit cards for
Gen Z use credit cards for a mix of everyday spending and financial management. The most common use is building a credit score, selected by 48.9% of respondents, followed closely by online shopping (46%).
Everyday purchases (28%) and travel (27.8%) are also common, while around a quarter (25.6%) use credit cards for emergency expenses. Smaller shares report using credit cards to cover expenses when their income is not sufficient (14%) or for large one-off purchases (13.8%). The share of Gen Z using credit cards to cover expenses when income isn’t enough reflects recent findings, where 39.7% of respondents living paycheck to paycheck said they did not believe they could cover unexpected expenses of $500 or more without borrowing or using credit.
| What Gen Z use credit cards for | |
|---|---|
| Purpose | Percentage of Gen Zers |
| Building credit | 48.9% |
| Online shopping | 46.0% |
| Everyday purchases | 28.0% |
| Travel | 27.8% |
| Emergency Expenses | 25.6% |
| Cover expenses when income isn’t enough | 14.0% |
| Large one-time purchases | 13.8% |
Data note: Percentages add up to more than 100% because respondents were able to pick more than one answer.
Debit cards are the main payment method for Gen Z
Debit cards are the most commonly used payment method by Gen Z, followed by credit cards. Around 43.2% of Gen Z respondents say they use a debit card as their primary payment method, compared to 33.5% who use a credit card.
Debit card use is higher among non-Gen Z respondents, with over half (50.7%) selecting it as their main payment method. In contrast, credit card usage is fairly close across both groups (33.5% vs 32%).
| Primary payment method for Gen Z | |
|---|---|
| Payment method | Percentage of Gen Zers |
| Debit card | 43.2% |
| Credit card | 33.5% |
| Bank transfers | 14.2% |
| Direct debits & Automatic payments | 5.9% |
| Cash | 2.4% |
| Digital wallets | 0.6% |
| Checks | 0.4% |
Why do Gen Z use credit cards?
The main reason Gen Z use credit cards over other options is for building credit scores, with 39.4% selecting this as their main reason. Credit cards may play a direct role in building credit scores. Making payments on time and keeping balances low relative to the credit limit are two of the most important factors in determining creditworthiness. [3] Experian. “How to Use a Credit Card to Build Credit.” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/how-to-use-a-credit-card-to-build-credit/
Other motivations include fraud protection (18.5%) and earning rewards (16.9%), while 11.6% cite convenience. Credit cards often offer additional benefits such as purchase protection, rewards programs like cash back or travel points, and protection against fraud, which could help explain why they are preferred over debit cards for many types of spending. [4] Discover. “What Are the Advantages of Credit Cards?” Accessed April 2, 2026. https://www.discover.com/credit-cards/card-smarts/what-are-the-advantages-of-credit-cards
| Why Gen Z use credit cards over debit cards or digital wallets | |
|---|---|
| Reason | Percentage of Gen Zers |
| Building my credit score | 39.4% |
| Fraud protection | 18.5% |
| Earning rewards | 16.9% |
| Convenience | 11.6% |
| Prefer debit card or cash | 9.2% |
| Insufficient funds in the bank account | 4.3% |
The majority of Gen Z credit cardholders use rewards
Credit card rewards are widely used by Gen Z, with far higher adoption than older generations. Gen Z are more than twice as likely to have a rewards credit card, with 88.3% reporting having a rewards credit card, including air miles, cash back, points, or other benefits. Compared to less than half (42.8%) of non-Gen Z respondents who report the same.
| Percentage of Gen Z that have a rewards credit card | |
|---|---|
| Has a rewards credit card | Percentage of Gen Zers |
| Yes | 88.3% |
| No | 11.7% |
How Gen Z manage their credit cards
Over a third (38.3%) of Gen Z respondents pay their full balance each month, while 33.9% pay more than the minimum amount, and 20.2% pay only the minimum payment. A small share (7.6%) reports that they sometimes miss payments.
A payment that becomes 30 days past due can negatively affect a credit score, while even being a day late may lead to late fees or penalty interest rates depending on the issuer.
With 7.6% of respondents reporting missed payments, a portion of these cardholders could incur these costs. Those who fall 30 days past due could also face longer-term credit impact, as late payments can remain on credit reports for up to seven years. [5] Experian. “Can One 30-Day Late Payment Hurt Your Credit Score?” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/can-one-30-day-late-payment-hurt-your-credit-score/
| How Gen Z manage monthly credit card payments | |
|---|---|
| How Gen Z manage their credit cards each month | Percentage of Gen Zers |
| Pay the full balance every month | 38.3% |
| Pay more than minimum | 33.9% |
| Pay the minimum payment | 20.2% |
| Sometimes miss payments | 7.6% |
Carrying balances over time
Most Gen Z credit card users in the survey carry debt beyond a single billing cycle, with 80.9% saying they have carried a balance for more than three months. Only 19.1% report not carrying a balance over this period, suggesting ongoing credit card debt may be common among Gen Z in this survey.
This generation isn't alone in carrying a credit card balance, a Federal Reserve Study based on 2024 data showed that just under half (46%) of credit cardholders carry a balance for at least a month. [6] Board of Governors of the Federal Reserve System. “Economic Well-Being of U.S. Households in 2024.” Accessed April 2, 2026. https://www.federalreserve.gov/publications/files/2024-report-economic-well-being-us-households-202505.pdf However, this figure is based on a larger, nationally representative sample and a shorter timeframe, meaning it is not directly comparable to the survey’s finding of balances carried over three months.
Even if a credit card balance isn’t paid in full, credit card issuers consider it an on-time payment if the minimum amount is paid each month.
Most Gen Zers (82.4%) have paid a late fee on their credit card
Late fees are common among Gen Z credit card users, with over four in five (82.4%) reporting that they have paid a late fee. In comparison, just over half (54.2%) of non-Gen Z respondents say the same, showing that missed or delayed payments could be more common among younger consumers in the survey.
Among Gen Z, more than half (55%) say they have paid a late fee more than once, while 27.5% have paid one at least once. Only 17.6% report never paying a late fee, highlighting how widespread missed payments are within this group.
Over a quarter (27.6%) of Gen Z respondents used a personal loan to consolidate debt
When looking to manage their debt, over half (51.8%) said that they use other debt to manage their current credit card, with 27.6% reporting use of a personal loan to consolidate debt, 24.2% using a balance transfer, while other respondents sought advice from a financial advisor (21.9%), or negotiated a payment plan with the card issuer (10.8%).
How confident is Gen Z in managing credit card debt
Of those surveyed, most Gen Z respondents (83.3%) said that they’re confident in their ability to manage credit card debt, with 67.3% saying they’re somewhat confident and 16% saying they were very confident, while others said they were not confident at all (3.8%) or not very confident (13%).
| How confident are Gen Z at managing credit card debt? | |
|---|---|
| Level of confidence | Percentage of Gen Zers |
| Very confident | 16.0% |
| Somewhat confident | 67.3% |
| Not very confident | 13.0% |
| Not confident at all | 3.8% |
Understanding of credit and its impact on Gen Z
Gen Z’s understanding of credit is mixed, with 40.5% rating their understanding of credit scores as high, 41.8% as moderate, and 17.7% report a low level of understanding.
In addition to answering questions about their level of understanding, Gen Z in the study also revealed the lasting impact that credit card debt can have, with 83.8% of Gen Z reporting that it has affected their mental health, including 24.2% who say it has had a major impact. With 31.7% of respondents saying that credit card debt has made them worry, 31.4% saying it caused them stress, and 23.8% losing sleep over the debt.
| How credit card debt affects Gen Z | |
|---|---|
| Effect | Percentage of Gen Zers |
| Worry | 31.7% |
| Stress | 31.4% |
| Lack of sleep | 23.8% |
| Shame | 17.6% |
| Helplessness | 14.6% |
| Depression | 11.4% |
Data note: Percentages add up to more than 100% because respondents were able to pick more than one answer.
Social media influences nearly nine in ten (88.9%) Gen Z on credit card and debt decisions
Social media plays a major role in influencing Gen Z’s financial decisions, with 88.9% reporting that it affects their credit card use and debt management, compared to 59.1% of non-Gen Z. Among Gen Z, 43.9% say the influence is significant, while 45% say it is somewhat significant, with just 11.1% saying it has no influence.
Platforms such as TikTok, YouTube, and Instagram are widely used by all generations for financial content and are often trusted sources of advice, contributing to their strong influence on decision-making. [7] Federal Reserve Bank of Philadelphia. “How Americans Use Social Media for Financial Advice.” Accessed April 2, 2026. https://www.philadelphiafed.org/-/media/FRBP/Assets/Consumer-Finance/Reports/how-americans-use-social-media-for-financial-advice.pdf?sc_lang=en
Despite this, social media is not the primary source of financial knowledge for most Gen Z in this survey. Parents and family remain the most common source (39.8%), followed by online research and friends (both 14.8%), with smaller shares learning through school (10.3%) and social media itself (9.8%).
| Where Gen Z learned most about credit cards and credit scores | |
|---|---|
| Source | Percentage of Gen Zers |
| Parents/family | 39.8% |
| Friends | 14.8% |
| Online research | 14.8% |
| School | 10.3% |
| Social media | 9.8% |
| Television | 4.2% |
| Financial institutions | 3.5% |
| Haven’t learned much about credit | 2.7% |
Methodology
A survey of 1,469 adults was carried out on behalf of Self Financial in March 2026 to understand Gen Z credit card habits, including how often they use them, how they manage credit card debt, and how their behaviors compare to those of people in other generations. The breakdown of respondents was as follows:
Gender:
- Female: 77.5%
- Male: 21.4%
- Non-binary: 1%
- Transgender: 0%
Age:
- Gen Z: 74.7%
- Millennial: 13.7%
- Gen X: 5.3%
- Silent Generation: 3.9%
- Baby Boomer: 2.4%
Sources
- [1] Bankrate. “Credit Card Debt Report: How Credit Card Debt Pauses Major Life Decisions.” Accessed April 2, 2026. https://www.bankrate.com/credit-cards/news/credit-card-debt-report/#credit-card-debt-pauses-major-life-decisions
- [2] Experian. “Average Credit Card Debt by Age.” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/
- [3] Experian. “How to Use a Credit Card to Build Credit.” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/how-to-use-a-credit-card-to-build-credit/
- [4] Discover. “What Are the Advantages of Credit Cards?” Accessed April 2, 2026. https://www.discover.com/credit-cards/card-smarts/what-are-the-advantages-of-credit-cards
- [5] Experian. “Can One 30-Day Late Payment Hurt Your Credit Score?” Accessed April 2, 2026. https://www.experian.com/blogs/ask-experian/can-one-30-day-late-payment-hurt-your-credit-score/
- [6] Board of Governors of the Federal Reserve System. “Economic Well-Being of U.S. Households in 2024.” Accessed April 2, 2026. https://www.federalreserve.gov/publications/files/2024-report-economic-well-being-us-households-202505.pdf
- [7] Federal Reserve Bank of Philadelphia. “How Americans Use Social Media for Financial Advice.” Accessed April 2, 2026. https://www.philadelphiafed.org/-/media/FRBP/Assets/Consumer-Finance/Reports/how-americans-use-social-media-for-financial-advice.pdf?sc_lang=en
