A third of Gen Zers lack control over their credit score, but managing it is simple, says an expert.

A significant number of young credit card users understand the significance of their credit score, but a considerable portion lack confidence in managing it effectively, according to a recent FICO study.

According to FICO's September study, 60% of adult Gen Zers consider understanding their credit score as a crucial aspect of financial literacy. However, 20% of them lack the knowledge or tools to do so, and nearly 30% don't feel in control of their credit score.

Despite that, Gen Zers' average credit score isn't too shabby.

Experian categorizes FICO scores into five ranges: 300-579 (Very Poor), 580-669 (Poor), 670-719 (Fair), 720-789 (Good), and 790-850 (Excellent).

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800 to 850

According to TransUnion data shared with CNBC Make It, Gen Zers' average credit score was 667 in the second quarter of this year, which falls within the "Fair" credit range.

A higher credit score in the "Very Good" or "Exceptional" range can provide young people with better interest rates when they apply for personal loans or mortgages, potentially saving them hundreds to thousands of dollars in the long run.

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No matter your current credit score, the good news is that credit scores can be improved and maintained with ease.

According to John Ulzheimer, a credit expert who previously worked for FICO and Experian, managing your credit scores and credit reports is relatively effortless and can be accomplished with minimal effort.

Understanding the two crucial elements that affect your credit score can aid in enhancing it.

These two factors impact your credit score most

According to FICO, your credit score is determined by five factors, each with varying importance.

• This monitors your timely payment of credit card bills, reflecting a 35% payment history.
• Your total debt and the percentage of your available revolving credit that you're currently utilizing are the amounts owed (30%).
• Your credit history length (15%): The duration you've been utilizing credit, commonly referred to as your credit age.
• The various types of credit you maintain, including credit cards, mortgage loans, and installment loans, contribute to your credit mix.
• Have you recently applied for new lines of credit?

Ulzheimer advises that maintaining your payment history and amounts owed are the two crucial elements that account for 65% of your credit score.

Scheduling regular online payments for your credit cards can help you avoid dings to your credit score, according to him.

Paying only the minimum payment may result in carrying a balance and incurring higher interest charges, which can increase your overall debt load.

It is important to keep your credit card debt low, as increasing your balance can make it harder to pay it off and make on-time payments, which can negatively impact your credit score and make it more difficult for lenders to extend credit to you, according to FICO's website.

Younger credit card users may have lower credit scores due to the fact that only 15% of their credit score is based on the length of time they have been using credit accounts. Even those with excellent credit card habits may not achieve a perfect 850 credit score because they have not been managing their credit for an extended period.

Ulzheimer states that maintaining respectable credit card debt and making timely payments will result in solid credit reports and scores.

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