What Iowa’s Young Adults Think of Credit: From Status Symbol to Strategic Tool

I got my first credit card when I was 18 and heading into college. Big, big mistake...

I racked up debt that took years to pay off, precisely what the credit card company was hoping I'd do, and millions of other newly minted adults.

But that was in the early 2000s. Is that still the way young adults view credit cards and their credit score?

Young Iowans Have a Different View on Credit Cards

In Iowa, young adults are recalibrating what credit means, not just financially, but socially.

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A recent survey from Credit One Bank explored how Millennials and Gen Z view credit and how those attitudes are shaping decisions in the Hawkeye State.

The study found clear generational differences: while older adults often treated credit as a tool, younger people increasingly see it as part of their social identity.

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Many in these age groups view having good credit as a signal of responsibility, status, and trust.

The Average Credit Card Debt Among Gen Z

This mindset shift is especially relevant in Iowa, where the average Gen Z credit card debt is about $2,514, well below many other states, but still shows that young Iowans are engaging with credit early.

Here are some key findings worth noting for Millennials and Gen Z in Iowa:

• More than half of Gen Z respondents say credit plays a role in how others perceive them.

• The survey also showed 50% of Millennials and 39% of Gen Z said debt felt “normal,” though younger respondents were more open about discussing money with friends and family.

• In Iowa, about 1 in 5 adults are considered “credit-constrained” due to thin credit histories or no credit files at all

Key Takeaways From the Credit Landscape in Iowa

For Iowans trying to navigate this landscape, a few takeaways stand out:

• Treat your credit score as more than just numbers; it’s also about how others might judge your financial habits.

• If you’re in your 20s or early 30s and building credit, aim for consistent on-time payments and mindful usage rather than chasing big balances.

• Be aware of your state’s context: Iowa has a lower average credit-card debt for young adults, but gaps in credit history still exist.

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As young Iowans shift from seeing credit as a simple borrowing tool to viewing it as part of their financial identity, being informed and deliberate matters more than ever.

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