Credit Card Statistics And Trends 2023 (2024)

For many of us, credit cards are a part of everyday life. There’s a good chance you’ve got a card or two in your wallet and that you pull them out regularly to make payments. But there’s a lot more to cards than what you carry. Credit card data also shows how people manage their cards, including when they’re paid and if they’re carrying a balance.

Ever wonder how your financial choices and habits stack up? Check out these credit card statistics to see how you compare.

Credit Card Debt Statistics

In the third quarter of 2022, the average credit card debt per borrower was $5,474, or about $617 higher than the year before.[1] This shift may be due to inflation and marks a move in the wrong direction. Collectively, this adds up to $38 billion in new debt in a single quarter and represents a 15% increase year-over-year—the largest change in two decades[2].

Credit Card vs. Cash Statistics

A study by the Federal Reserve Bank of San Francisco found that in 2021, credit cards were used to make 28% of all payments.[3] This is the highest level it’s been since the study began in 2016, indicating that credit cards are gaining ground compared to cash or other forms of payment. The percentage of payments made by credit cards is larger for households with higher income: it jumps to 34% for households earning $100,000 to $149,999 and 44% for those earning over $150,000.

More recently, a Forbes Advisor survey from February 2023 shows that just 9% of Americans primarily use cash to pay for purchases. Debit cards and credit cards are the primary payment method used, with 54% of consumers using a physical or virtual debit card and 36% of consumers using a physical or virtual credit card.[4]

Deciding to use cash versus credit is a personal decision based on your own financial situation. However, paying by credit card can have several advantages, if you’re disciplined, including security benefits and convenience. Compared to debit cards, credit cards may also offer the option to earn increased rewards.

Credit Card Usage by Key Demographics

According to the Fed’s 2021 report on the Economic Well-Being of U.S. Households[5] :

• Of households earning more than $100,000 per year, an overwhelming majority of 98% have a credit card. Forbes Advisor considers the typical household in the 70th percentile of income, which is currently $116,000[6] , when reviewing credit cards. Conversely, only 57% of households with less than $25,000 in annual income hold a credit card.
• A similar trend can be observed when considering educational status and credit usage: 96% of college graduates hold a credit card while only 52% of those who have not completed high school do.
• Asian Americans (93%) and Caucasian Americans (88%) were the most likely demographic groups to hold credit cards.

How Many Americans Use Credit Cards?

84% of U.S. adults had a credit card in 2021. About 73% of Americans have a credit card by age 25, making credit cards the most common first credit experience for young adults.[7]

In Q4 2022, credit card users reached a total of 166 million according to TransUnion, up from the prior three years.[8]Among those users, new card accounts are growing, too. Over the past year, nearly half the population (47.5%) opened at least one new account[9], bringing the total number of accounts to over 518 million by the end of 2022.

Applying for a new card can come with a number of benefits, including access to credit lines, membership benefits and the ability to earn credit card rewards. However, there are a few things to know before applying for a credit card.

How Many Credit Cards Do Americans Have?

An Experian report shows that, on average, people have three different credit card accounts.

Roughly 191 million American adults have at least one credit card account, half of all Americans have at least two cards and 13% have at least five cards.[10]

There’s no right number for how many cards you should have. In fact, holding multiple credit cards can actually be good for your credit score, assuming you’re using them responsibly. That’s because having access to additional credit can keep your credit utilization low.

Credit Card Ownership Statistics

The number of credit cards varies a bit by generation and tends to go up for older generations. Gen Z members, for example, only had 1.9 credit cards as of 2020 while Baby Boomers had 4.6. Since people may apply for new accounts over their lifetime, this is a logical progression.”

How Many Americans Carry a Credit Card Balance?

In 2021, 48% of all credit card users carried a balance at least once based on Federal Reserve data. While families with higher income levels were less likely to report revolving a balance, the proportion of cardholders was substantial across all income levels.[11]

According to a Forbes Advisor survey from February 2023, 22% of credit cardholders are either very unconfident or somewhat unconfident about paying their next credit card bill in full.[12]

Sometimes, carrying a balance can’t be helped. However, if you expect to have to carry a balance in advance, applying for a 0% introductory APR card can buy you a number of months to pay off your balance without accruing interest expenses.

How Many Americans Are Delinquent With Their Credit Card Payments?

After staying under 2% for six quarters in a row, credit card delinquency rates broke above 2% in the third quarter of 2022. Rates are still low compared to where they’ve been historically, but this does represent a notable bump back up. Similarly, credit card charge-offs (the number of accounts written off by card issuers) have risen gradually throughout 2022 after falling in 2021.[13]

Paying off your credit card bill in full every month is always the best course of action, but when that’s not possible, it’s still important to make the minimum payment. By making the minimum payment, you’ll avoid a delinquent mark on your credit report as well as avoiding several credit card fees.

What Is the Average Credit Score?

According to FICO data from April 2022, the average credit score is 716. This score is considered a “good” rating based on the FICO scale and is one factor in determining approval odds and rates when applying for financing. Impressively, scores have consistently improved every year since 2017.[14]

If your score is lower than the national average, you may want to take steps toward improving your credit score. Having a strong credit rating can help qualify you for the best credit cards and most competitive rates for mortgages, auto loans and other lending products.

What Is the Average Credit Card Interest Rate?

The average credit card interest rate is 24.08%, according to Forbes Advisor’s credit card rate report as of mid-March 2023.

The Federal Reserve keeps tabs on the average interest rate that U.S. consumers pay for a variety of different financial products—credit cards included. In November 2022, the average credit card interest rate in the U.S. on accounts with balances that assessed interest was 19.07%.[15]

Although expenses can sneak up on anyone, credit card interest rates are often high and carrying a balance can add even more costs to your budget. Working toward a zero balance will help you avoid interest charges. There are several credit card payoff strategies that can be effective as you strive toward that goal.

Do Cardholders Know Their Interest Rates?

According to a Forbes Advisor survey from February 2023, 47% of U.S. cardholders reported that they don’t know or are unsure about the interest rate on their card. Gen Z had the highest rate of uncertainty, with 55% of respondents indicating that they don’t know their APY or are uncertain about it.[16]

Largest Credit Card Issuers

By far, Chase has issued more cards than other institutions, with more than 149 million Chase credit cards in circulation. This is substantially over the number of the next largest issuer, Capital One, with 106 million cards in circulation.[17]

Comparing credit cards is an important part of the decision-making process but in many cases, the issuer may not be a top factor in your decision. Instead, features like interest rates, rewards rates and annual fees may weigh more heavily into finding the best card for you.

Most Common Types of Credit Cards

Of the four main types of credit cards—Visa, Mastercard, American Express and Discover—Visa is by far the most common, making up 52.8% of cards in circulation. That’s head and shoulders above Mastercard, which only comprises 31.6% of cards and leaves Discover and American Express both in single digits.[18]

It doesn’t make much difference if you choose Visa or Mastercard since both are widely accepted in the U.S. and internationally. American Express and Discover also have some strong card options in their portfolio that are worth considering.

Swipe Fees Are Measured in Billions of Dollars

Merchant processing fees added up to more than $105 billion in 2021. These costs represent what businesses pay to credit card brands (such as Visa or American Express) in order to process consumer payments when they pay by card. Swipes typically amount to 1% to 4% of the purchase price, but can vary by merchant and type of card. Then, these expenses are baked into prices passed along to consumers.[19]

Obviously, these fees are a major source of revenue for credit card companies, but they’re not the only ones who benefit. Credit cards may use a portion of these fees to fund customer benefits, such as rewards programs, purchase protections or other cardholder benefits. Businesses have a convenient way to collect payments and may even make additional sales since customers have time to pay off their bills rather than needing cash immediately on hand.

Future of Credit Cards

Credit card use is widespread and continues to be a major player in our financial lives. Although many cardholders still have some debt and may carry a balance, we’re seeing positive changes in how credit cards are being used and paid. Trends toward lower balances, delinquencies and charge-offs show that cardholders are moving in the right direction even as the number of card users has reached an all-time high.

The worrying trend to watch is interest rates—as the prime rate fluctuates and increases, credit card APRs do as well. This translates into higher carrying costs for consumers and the increased possibility of individuals having trouble meeting their obligations if an unexpected job loss or other financial hit occurs.

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Sources:

1. Transunion: Q3 2022 Quarterly Credit Industry Insights Report (CIIR)
2. New York Fed: Q3 2022 Quarterly Report For Household Debt And Credit
3. Federal Reserve Bank of San Francisco: May 2022 Findings From The Diary Of Consumer Payment Choice
4. Forbes Advisor OnePoll Survey: February 2023
5. Federal Reserve Bank of San Francisco: May 2022 Findings From The Diary Of Consumer Payment Choice
6. U.S.Census: Income In The United States 2021
7. Federal Reserve: Economic Wellbeing Of U.S. Households In 2021
8. Transunion: Q4 2022 TransUnion Credit Industry Insights Report
9. MyFico: Average U.S. FICO® Score Stays Steady at 716
10. Experian: State Of Credit 2021
11. Federal Reserve: Economic Wellbeing Of U.S. Households In 2021
12. Forbes Advisor Feb 2023 Credit Card Tracking Poll via OnePoll
13. Federal Reserve Board: Charge-Off And Delinquency Rates On Loans and Leases at Commercial Banks
14. Experian Consumer Credit Review
15. St. Louis Fed: Commercial Bank Interest Rate on Credit Card Plans, All Accounts
16. Forbes Advisor: Feb 2023 Credit Card Tracking Poll
17. Nilson Report
18. Shift Processing data
19. Nilson Report