2026-07-08T09:01:00
(BPT) – The postgraduation season is seen as a major milestone, but it’s just one of many moments when young adults begin taking greater control of their finances. Whether they’re starting a new job, moving into their first apartment, pursuing additional education or becoming more financially independent, many young people are focused on building a strong financial foundation.
However, as they begin to review their finances, certain young adults will discover that they’re entering adulthood without a financial identity.
Why credit matters early on
Roughly 17 million Americans — many of whom are young adults — are considered “credit invisible” or “thin file.” This means they either have no credit report or insufficient credit history to generate a valid score.
Without a credit history, young adults can struggle to rent an apartment, qualify for loans and credit cards, and are locked out of other financial opportunities that are key to gaining independence and financial mobility. This is particularly concerning for Gen Z as they’re entering adulthood during a period of rising costs, growing debt and economic uncertainty.
When young adults try to establish credit, they realize they’re caught in a paradox: They need credit to get credit. The traditional credit system has historically created a catch-22. You need a credit history to access financial products, but you often need those products to build a credit history in the first place.
How to spark a credit history
Data from Intuit Credit Karma found that Gen Z is highly motivated by financial wellness, yet almost half say they don’t know where to start when building credit.
The good news is that digital tools like Credit Spark can help credit-invisible consumers establish credit by using responsible financial habits they already demonstrate. This free financial tool, created by Intuit Credit Karma, helps consumers turn their existing utility and phone payments into credit history.
With Credit Spark, building a credit history is simple. The platform reports positive payments to TransUnion to help consumers establish credit faster. More importantly, the platform does not require consumers to open a credit card or take on new debt, giving them more control over how they begin building credit.
Tools for every stage of the financial journey
For consumers who are just getting started, Credit Spark can help establish a credit history, creating a foundation for future financial opportunities. As their needs evolve beyond building credit, Credit Karma is designed to grow with consumers throughout their financial journey. Whether it’s helping them save interest on their revolving debt with Debt Assistant or maximizing the rewards and perks of the credit cards in their wallet with Cards Optimizer, Credit Karma meets members wherever they are on their path.
As part of Intuit’s Consumer Platform, Credit Karma works alongside TurboTax to help consumers make financial decisions with greater confidence. Together, they support consumers throughout the year to navigate important milestones — from building credit and managing debt to filing taxes and planning for future financial goals.
The first step toward financial progress
Credit building should be accessible from the start. With a little help, Gen Z graduates can build financial confidence and establish habits that support long-term financial progress. To learn more, visit CreditKarma.com/Credit-Spark.
