Facts About Credit Cards and the Statistics You Need to Know

Credit cards are a part of everyday life for many of us, but have you ever stopped to think about the statistics behind them?

In the United States, there are over 1.5 billion credit cards in circulation, with the average American having two to three credit cards.

The majority of credit card holders pay their balances in full each month, with 44% of cardholders reporting they always pay their balance in full.

The average credit card debt per household is around $6,300, with some households carrying much higher balances.

Credit card usage varies greatly depending on income levels. Households earning more than $100,000 per year have a credit card at an astonishing 98%.

Only 57% of households with less than $25,000 in annual income hold a credit card, highlighting a significant disparity in credit card adoption among different income groups.

Here's a breakdown of credit card usage by demographic:

These statistics suggest that credit card usage is more prevalent among higher-income households and certain demographic groups.

Credit card use is widespread and continues to be a major player in our financial lives. Rising debt balances and higher delinquencies and charge-offs throughout 2023 are concerning trends.

Credit card APRs tend to follow the prime rate, which has been increasing, making it more expensive to carry a balance. This can make it harder to meet debt obligations if unexpected financial hits occur.

Higher interest rates and rising debt balances can be a challenging combination for credit card users.

The best credit cards for 2025 are listed in the article, but it's essential to consider your financial situation and needs before choosing a card.

Here are some types of credit cards that are popular or recommended:

More than a third of people primarily use credit cards to earn rewards.

Credit cards are also seen as a safer option than carrying cash, with 33% of consumers agreeing with this reason.

Gen Z and Millennials are more likely to use credit cards to build credit, with 41% and 40% of these generations respectively citing this as a key reason.

Baby Boomers, on the other hand, tend to use credit cards because they are safer than cash, with 43% of this generation agreeing with this reason.

A significant number of consumers, 28%, use credit cards to cover expenses they can't afford, highlighting the importance of responsible credit card usage.

Credit card debt and delinquency are two major concerns for many Americans. The average credit card debt per borrower has reached an all-time high of $6,360 at the end of 2023, a 10% increase from the previous year.

This shift may be due to inflation or other financial stress, making it a worrying trend. The total U.S. credit card debt has also increased to $1.13 trillion, with $50 billion in new debt added in a single quarter.

Credit card delinquency has been steadily increasing over the past year and a half, hitting 3.1% by the end of 2023, the highest rate since 2011. Credit card charge-offs have also risen, recently hitting a 12-year high at 4.24%.

Making the minimum payment on time each month can help avoid a negative mark on your credit report and several credit card fees. However, paying off your credit card bill in full every month is still the best course of action.

Here's a breakdown of the average credit card debt per state in the U.S. as of 2023:

The average credit score in the U.S. has remained relatively stable, ranging from 675 to 725 from 2005 to 2024. However, this may not be enough to offset the increasing credit card debt and delinquency rates.

Chase has issued more credit cards than any other institution, with over 149 million cards in circulation.

The largest credit card issuers in the US in 2023, based on market share in total card transaction value, are Chase, Bank of America, Capital One, Citi, and Wells Fargo.

Chase is also the leading credit card issuer in the US in terms of purchase volume, with a significant lead over the next largest issuer, Bank of America.

The biggest commercial card issuers in the US in 2023, based on purchase volume, are Chase, Bank of America, and Capital One.

Here are the top five payment card issuers in the US in 2023, combining both credit cards and debit cards, based on market share in total card transaction value:

Credit card processing fees in the US in 2024, by brand, vary significantly, with Visa and Mastercard charging an average of 1.47% and 1.53% per transaction, respectively, while American Express charges an average of 2.44%.

Credit cards can come with a lot of fine print, including fees that can add up quickly. Late fees can range from $32 to more, depending on the card provider and your payment history.

If you miss a payment, your credit score will take a hit, so it's essential to make timely payments. A late payment will be reported to the credit bureaus and reflected in your credit history.

Annual fees can be a significant expense, ranging from $25 to $35, depending on the card issuer. Some cards have rewards programs that offer higher rewards on purchases, but you'll need to weigh the benefits against the costs.

Make sure you understand the fees associated with your credit card, including over-limit fees, cash advance fees, and returned payment fees. These fees can add up quickly, so it's crucial to be aware of them.

Customer loyalty programs are a crucial aspect of credit card rewards, and it's interesting to see how they impact brand choice. In the US, 72% of consumers say customer loyalty programs are important in their brand choice.

Loyalty programs offer various benefits, and it's essential to understand what consumers find most attractive. According to recent data, consumers aged 18-24 prioritize exclusive discounts, while those aged 25-34 prefer free shipping and returns. In contrast, consumers aged 55 and older value rewards points and cashback.

The types of loyalty programs consumers use also vary. As of February 2024, the leading types of customer loyalty programs in the US include digital coupons, email newsletters, and loyalty apps. These programs help build customer loyalty and drive repeat business.

The revenue generated from loyalty programs is also significant. In 2022, US airlines generated $1.4 billion in revenue from loyalty programs. This highlights the importance of loyalty programs in the credit card industry.

Here's a breakdown of the leading types of loyalty programs in the US as of February 2024:

Merchant processing fees, also known as swipe fees, added up to more than $160 billion in 2022, a 20% increase over 2021.

These fees are a major source of revenue for credit card companies, and they're not just a cost for businesses - they're also passed on to consumers.

Credit card companies use a portion of these fees to fund customer benefits, such as rewards programs, purchase protections, or other cardholder benefits.

Late fees can be as high as $32, and they'll also hurt your credit score if you're late on payments.

Over-limit fees can range from $25 to $35, and some card issuers will simply decline any charges that exceed your credit limit.

Annual fees can be a yearly cost, but some credit cards are available without them.

Cash advance fees are usually calculated as a percentage of the cash you receive, and they can be costly.

Returned payment fees are a penalty for bounced payments, and they can hurt your credit score.

Credit card ownership varies significantly across different demographics. The majority of households earning more than $100,000 per year have a credit card, with an astonishing 98% of households in this income bracket holding a credit card.

Households with lower incomes, however, are less likely to have a credit card, with only 57% of households with less than $25,000 in annual income holding a credit card.

Interestingly, credit card ownership also varies by age, with younger generations having fewer credit cards. For example, Gen Z members had only 2.1 credit cards as of 2022, while Baby Boomers had 4.6.

Here's a breakdown of the average number of credit cards held by different age groups:

Overall, credit card ownership is influenced by a range of factors, including income, age, and demographic background.

Demographics play a significant role in credit card ownership and usage.

According to Forbes Advisor, an overwhelming majority of households earning more than $100,000 per year have a credit card (98%). This is a stark contrast to households with less than $25,000 in annual income, where only 57% hold a credit card.

Asian Americans (92%) and Caucasian Americans (87%) are the most likely demographic groups to hold credit cards. This is a notable statistic, as it highlights the importance of cultural and socioeconomic factors in credit card ownership.

The number of credit cards varies by generation, with Baby Boomers having 4.6 credit cards on average, compared to Gen Z members who had only 2.1 credit cards as of 2022.

Here's a breakdown of the average number of credit cards per generation:

By age 25, about 73% of Americans have a credit card, making credit cards the most common first credit experience for young adults.

The average credit score is a crucial factor in determining approval odds and rates when applying for financing. According to FICO data from April 2023, the average credit score is 718.

This score is considered a "good" rating based on the FICO scoring model. Impressively, scores have consistently improved every year since 2013.

The average credit card interest rate is a staggering 27.89%, according to Forbes Advisor's credit card rate report as of mid-March 2024. This can quickly add up and increase the burden on your budget if you're not careful.

In November 2023, the average credit card interest rate in the U.S. on accounts with balances where interest was assessed was 21.47%, as tracked by the Federal Reserve. This is a significant difference, and it's essential to understand your interest rate to avoid surprise charges.

A whopping 46% of U.S. cardholders reported that they don't know or are unsure about the interest rate on their card, according to a Forbes Advisor survey from December 2023. This uncertainty can lead to missed payments and even higher interest rates.

The monthly payment on a credit card is the minimum payment a cardholder must pay to avoid their card payments from being past due, typically calculated as a percentage of the balance. If you can, it's best to pay more than the minimum monthly payment to avoid the high interest charges that quickly grow your credit card bill.

In 2022, 48% of all credit card users carried a balance at least once, based on Federal Reserve data. This highlights the importance of understanding your credit card terms and making timely payments to avoid accumulating interest charges.

Carrying a credit card balance is more common than you think. In 2022, 48% of all credit card users carried a balance at least once based on Federal Reserve data.

Higher income levels don't exempt you from carrying a balance, as the proportion of cardholders was substantial across all income levels.

22% of credit cardholders are either somewhat or very unconfident they can pay their next credit card bill in full, according to a Forbes Advisor survey from December 2023.

Carrying a balance can't always be avoided, but being aware of the risks can help you prepare for the challenge ahead.

The average credit card interest rate is a staggering 27.89%, according to Forbes Advisor's credit card rate report as of mid-March 2024. This is a significant burden on consumers' budgets.

In November 2023, the Federal Reserve reported an average credit card interest rate of 21.47% for accounts with balances where interest was assessed. This highlights the importance of paying off your credit card balance in full each month to avoid interest charges.

Carrying a balance can sneak up on anyone, and credit card interest rates are often high. Working toward a zero balance will help you avoid interest charges and keep your budget on track.

In fact, 46% of U.S. cardholders reported that they don’t know or are unsure about the interest rate on their card, according to a Forbes Advisor survey from December 2023. This uncertainty can lead to missed payments and further financial strain.

The interest that your credit card issuer charges you is calculated as an annual percentage rate or APR, which is then divided by 12 and applied to your outstanding balance each month. This is why it's essential to understand your APR and how it affects your payments.

The monthly payment on a credit card is the minimum payment a cardholder must pay to avoid their card payments from being past due.

It's usually calculated as a percentage of the statement total, including any past due amounts and late fees.

This amount can vary depending on the credit card provider.

Paying only the minimum monthly payment can lead to high interest charges that quickly grow your credit card bill.

You should aim to pay more than the minimum monthly payment if possible to avoid these high interest charges.