New USAA Report Provides Gen Z with a Roadmap to Achieving Better Credit Scores

By W.B. King

More than 300,000 USAA Gen Z members (of its approximate 14 million) have at least one active USAA Bank credit card, but how they build their credit portfolio has raised concerns—a lesson for credit unions. For example, an August 2025 USAA study, Gen Z and the Path to a Perfect Credit Score, found that 45% of Gen Z members polled “lack a good understanding of the factors that affect their credit score.” Additionally, 18% have never checked their credit score.

“It’s no secret that Gen Z is facing financial stress, but what we’re seeing is that many are lacking a crucial understanding of how credit affects their long-term financial health,” said USAA Bank President Michael Moran, noting that 1,000 Gen Zers (ages 18 to 26) were surveyed. “We believe that financial security starts early and that, with practical tools and guidance, Gen Z can forge a strong path. That’s why we created ‘Perfect Credit Score Day’ – to serve as a compelling reminder of the importance of credit and to empower our members and others to improve their financial wellness.”

To better help these members with related challenges, and based on the highest score credit score available (850), Moran further explained that “8/5” is now an “unofficial holiday” at USAA. Founded in 1922 by a group of military officers, the San Antonio-based USAA provides insurance, banking and retirement solutions to the U.S. military, veterans who have honorably served and their families.

High Anxiety

The report also found that Gen Z is “motivated yet underinformed” when it comes to financial planning. Regarding the latter, stumbling blocks include anxiety, confusion, and financial pressures. Fifty-four percent of respondents, for instance, have anxiety about checking their credit scores and of that group, 62% said they never check their scores.

“For the most part, Gen Z knows that credit scores matter. While the majority – 75% - are aware generally of that their score is, far fewer know what goes into a good credit score,” the report stated. “Eighty-one of respondents know it is important to have a good credit score for their financial health, 25% don’t know the range of their credit score, and 55% report knowing the factors that determine a strong credit score.”

Achieving Exceptional Credit Scores

Among other factors impacting Gen Z credit scores are inflation and debt. “Respondents listed their biggest perceived barriers to achieving an exceptional credit score as: rising living costs (27%), spending too much (20%), credit card debt (17%), and student loans (17%),” the report stated.

The noted challenges notwithstanding, 76% of those polled also expressed optimism about achieving “exceptional” credit scores (800 to 850) in the coming years. “Sixty-seven percent are interested in learning more about ways they can improve their credit score and 86% are open and willing to take action to improve their credit scores,” the report said. Respondents also plan to set a budget (56%), pay down credit cards (37%), seek help from a parent or expert (33%), and 29% noted they would consult an artificial intelligence (AI) assistant.

Bridging the Knowledge Gap With Action

In the coming years, Moran said USAA will work with Gen Z, and other members, on making checking credit scores a “regular practice” and creating “action plans” to improve standing credit scores.

“Financial stress is not stopping Gen Z from having healthy credit aspirations. We can collectively help Gen Z build credit by bridging the gap between attitudes, knowledge and action,” noted Moran. “With the right tools and advice, Gen Z can feel encouraged, not anxious or discouraged, from engaging with their credit score.”