Credit scores shape members’ ability to access housing, transportation, and life’s biggest opportunities, but for many consumers—especially the younger generations—credit remains a confusing, intimidating topic. This lack of understanding represents both a challenge and a call to action for credit unions.
Credit scores vary notably by age. Gen Z starts with an average score of 665, which steadily increases across generations—rising to 687 for millennials and reaching 746 for baby boomers. Diving deeper, just 54% of 18- to 24-year-olds know their current credit score, compared to more than 70% of adults ages 25 to 64. The variation in credit scores across age groups is both significant and revealing.
While younger generations have grown up in a digital-first world where most information is a quick internet search away, over 80% of Gen Z and millennials believe their financial planning needs improvement with both generations sharing that they struggle to access trusted advice.
With strong member relationships and a mission of financial empowerment, credit unions are uniquely positioned to make a difference by offering the education, guidance, and responsible credit-building products, like secured cards, that both support and empower members to take control of their credit journey. However, when offering these tools in-house, credit unions often face practical constraints such as limited liquidity to absorb charge-offs, tighter risk tolerance, and operational challenges in expanding underwriting. These limitations can prevent even the most member-focused institutions from offering the kind of credit access and support many members are seeking today.
By partnering with Elan, your cardmembers gain access to a full suite of financial wellness products and tools to strengthen credit literacy and support responsible usage. Download the whitepaper to access more insights into what members know about their financial health, what they want to learn, and how credit unions can step in as trusted partners to build financial confidence.
