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The United States has a staggering number of credit cards. According to the Federal Reserve, there are over 1 billion credit cards in circulation.
The average American has between 2-3 credit cards in their wallet. This is likely due to the convenience of having multiple cards for different purposes, such as cashback rewards or travel points.
Credit cards are a ubiquitous part of modern life, with many people relying on them for everyday purchases.
Key Takeaways
There are many credit card companies in the United States, but did you know that they can be categorized into two distinct roles? Credit card issuers and networks perform these roles, though both can be considered credit card companies.
Credit card issuers are responsible for the details of your card, including the rates, fees, and perks. This means they're the ones who determine what benefits you'll get with your card.
Your credit card network, on the other hand, may play a role in the available card features. This is an important aspect to consider when choosing the right card for you.
Choosing the right credit card issuer can ultimately help you choose the right card for your needs. It's not just about comparing benefits, but also understanding the issuer and network behind the card.
Here's a breakdown of the key differences between credit card issuers and networks:
- Issuer: responsible for card details, rates, fees, and perks
- Network: may play a role in available card features
Understanding these roles can help you make the most of your credit card and get the benefits you need.
Credit Card Networks and Issuers
There are four major credit card networks in the U.S.: American Express, Discover, Mastercard, and Visa. American Express is the world's largest global payment network and also issues its own cards.
American Express and Discover are unique in that they issue their own cards, whereas the other two networks work with banks to offer card products. This is why you won't see Amex or Discover cards offered by card issuers like Bank of America, Capital One, or Chase.
Here are the four major credit card networks in the U.S. with a brief description of each:
- American Express: The world's largest global payment network and also issues its own cards.
- Discover: Operates in over 200 countries and territories with a reach of more than 345 million cardholders.
- Mastercard: Operates in more than 210 countries and territories worldwide.
- Visa: Accepted in more than 200 countries and territories around the world, with more than 4.4 billion Visa cards currently in use worldwide.
Bank of America
Bank of America is a well-established bank with a long history, dating back over 240 years. They offer a range of financial products, including credit cards, home loans, auto loans, and checking and savings accounts.
Their credit card options are particularly popular, with a variety of rewards cards available. Bank of America offers secured credit cards for those with bad credit, including the Bank of America Unlimited Cash Rewards Secured credit card.
One of the advantages of using Bank of America is their Preferred Rewards program, which can boost credit card rewards for customers with qualifying accounts. This can also lead to lower interest rates on loans and higher interest rates on savings accounts.
Bank of America credit cards have received high satisfaction ratings, with a J.D. Power 2023 U.S. Credit Card Satisfaction ranking of #2 (tied).
Chase
Chase is a force to be reckoned with in the credit card space, boasting the largest credit card portfolio of any card issuer worldwide.
With over 4,700 physical bank branches nationwide, it's no wonder they're one of the top issuers on the market.
Their popular credit card products include the Chase Sapphire Preferred Card, Chase Freedom Unlimited, Chase Freedom Flex, and Ink Business Preferred Credit Card.
The Chase Ultimate Rewards program is a major draw, allowing you to redeem rewards for cash back, statement credits, gift cards, or travel through the Chase portal.
This program is particularly appealing to travelers, as it lets you transfer points to Chase airline and hotel partners like British Airways, Southwest Rapid Rewards, Marriott Bonvoy, and World of Hyatt.
Chase credit cards are some of the most coveted out there, and it's no surprise why - they offer some of the best credit card combos around, making it easy to earn and redeem rewards.
Their commitment to customer satisfaction is evident, with a J.D. Power 2023 U.S. Credit Card Satisfaction ranking of #5.
Here are some of the most popular Chase credit cards:
- Chase Sapphire Preferred Card
- Chase Freedom Unlimited
- Chase Freedom Flex
- Ink Business Preferred Credit Card
Credit Card Statistics
The number of credit card accounts in the United States is on the rise, surpassing pre-pandemic levels and reaching the highest level in over 20 years. This growth is evident in the data from 2023, which shows a total of 594.75 million credit card accounts.
The number of cardholders is also increasing, with a predicted growth of nearly 6% to 193 million by 2023. In 2018, the number of cardholders was 182 million, a growth of about 16.5% compared to 7 years ago.
The average number of credit cards per person rose to 3.9 in 2023, an increase of 30% from 3 cards per person in 2021. This trend is significant, as it suggests that people are holding onto more credit cards than ever before.
Here's a breakdown of the average number of credit cards per person by age group:
The average credit card balances are also increasing, with a 10% growth to $6,501 in 2023. This is a significant increase from the previous year, and it suggests that people are using their credit cards more frequently.
Trends and Patterns
According to the data, the number of credit cards in the United States is staggering, with over 1 billion cards issued in 2020 alone. This number is expected to continue growing as more people turn to credit cards for everyday purchases.
The top credit card issuers in the US are the big banks, with JPMorgan Chase, Bank of America, and Citibank holding the top three spots. These banks issue a significant portion of the credit cards in circulation.
Interestingly, the average American has around 3-4 credit cards, with some individuals having as many as 10 or more. This highlights the widespread use of credit cards in everyday life.
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Trend of Decline
The trend of decline is a fascinating phenomenon that's been observed in the way we carry credit cards. On average, consumers in the US now carry fewer cards than they did in 2017.
The average number of cards has steadily declined since 2017, when the typical wallet held 4.2 active credit cards. As of the third quarter of 2023, consumers carried 3.9 cards on average.
This decline in the average number of cards is a relatively recent development, having picked up pace since the early days of the pandemic.
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Older Consumers Have More Activity
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Older consumers tend to have more active credit cards on average. This is evident when looking at the average number of credit cards held by each generation.
According to Experian data as of Q3 2023, Generation Z, which includes consumers aged 18-26, has an average of just two credit cards. This is significantly lower than the average number of credit cards held by older generations.
In fact, the average number of credit cards held by consumers in their 40s and 50s, known as Generation X and Baby boomers, is around 4.3. This is more than double the average number of credit cards held by Generation Z.
A closer look at the data reveals a clear pattern: the average number of credit cards increases throughout young adulthood and middle age, then drops off in the retirement years.
Here's a breakdown of the average number of credit cards held by each generation:
Geographic Distribution
In the United States, the number of credit cards held by residents varies significantly depending on the state they live in. Residents of higher-population states tend to carry more credit cards than those in states with fewer and smaller population centers.
The national average is around four credit cards per consumer, but some states have significantly fewer credit cards per consumer. For example, Alaska, South Dakota, Vermont, and Wyoming have an average of about 3.3 credit cards per consumer.
Here's a breakdown of the top 10 metro areas with the fewest credit cards per person, based on data from TransUnion LLC:
On the other hand, some metro areas have a significantly higher number of credit cards per person, such as New York City and Miami, which have 3.06 and 3.02 credit cards per person, respectively.
Ownership by Race/Ethnicity
The data shows that 86% of white adults have a credit card, which is a significantly higher percentage compared to other racial and ethnic groups.
A notable disparity exists between white and Black adults, with 70% of Black adults holding a credit card.
Hispanic adults also have a lower credit card ownership rate, at 74%.
Interestingly, Asian adults have the highest credit card ownership rate, with 90% of them holding a credit card.
Here's a breakdown of credit card ownership by racial and ethnic group:
More Populous States Have More
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More populous states tend to have residents with more credit cards on average. This is a relatively small difference, though, with the national average being around four credit cards per consumer.
Residents of states with smaller population centers, such as Alaska, South Dakota, Vermont, and Wyoming, have "only" about 3.3 credit cards per consumer. This is not a significant departure from the national average.
In some of the most populous states, like New York and California, residents are more likely to open credit cards. This is reflected in the average number of credit cards per person in metro areas like New York-Northern New Jersey-Long Island, NY-NJ-PA, which has an average of 3.06 credit cards per person.
Here's a breakdown of the top 5 and bottom 5 metro areas with the highest and lowest average number of credit cards per person:
The national average is 2.69 credit cards per person, which is also the average for the Denver-Aurora, CO metro area.
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Sources
- https://www.bankrate.com/credit-cards/advice/list-of-credit-card-companies/
- https://wallethub.com/edu/cc/number-of-credit-cards/25532
- https://www.experian.com/blogs/ask-experian/average-number-of-credit-cards-a-person-has/
- https://financebuzz.com/limit-how-many-credit-cards
- https://www.creditkarma.com/credit-cards/i/how-many-credit-cards-does-the-average-american-have
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