How Many People Have Credit Cards in the US and the Industry

In the United States, over 200 million adults have at least one credit card.

According to the Federal Reserve, this number has been steadily increasing over the years, with the total number of credit cards in circulation reaching over 1.5 billion in 2020.

The credit card industry is a significant player in the US economy, with total outstanding credit card debt exceeding $1 trillion.

A staggering 75% of Americans have at least one credit card, making it a ubiquitous part of American financial lives.

Credit Card Ownership varies significantly based on income level. For those earning less than $25,000, 46% of adults have a credit card.

The majority of adults in higher income brackets have credit cards. In fact, 75% of those earning between $25,000 and $49,999 have one. This number jumps to 89% for those earning between $50,000 and $99,000.

The trend continues upward for higher earners, with 97% of those making $100,000 or more having a credit card. This makes sense, as those with higher incomes often have more financial stability and may be more likely to apply for credit cards.

Here's a breakdown of credit card ownership by income level:

Interestingly, the number of credit cards also varies by generation. Gen Z members tend to have fewer credit cards, with an average of 2.1 as of 2022.

The average American has a significant amount of credit card debt, with the average credit card debt per borrower reaching an all-time high of $6,360 at the end of 2023.

This marks a 10% increase from the previous year, adding up to a total of $1.13 trillion in U.S. credit card debt. Credit card debt has become a major concern for many Americans, with 48% of credit card users carrying a balance at least once in 2022.

According to a Forbes Advisor survey, 22% of credit cardholders are unsure if they can pay their next credit card bill in full, highlighting the need for responsible credit card management.

The number of credit cards varies by generation, with Gen Z members having only 2.1 credit cards as of 2022, while Baby Boomers had 4.6. This is a logical progression, given that people may apply for new accounts over their lifetime.

The total number of credit card accounts has surpassed pre-pandemic levels, reaching the highest level in 20+ years. In 2024, the number of credit card accounts was 596.35 million in Q1, and 599.10 million in Q2.

Here is a breakdown of the average number of credit cards by state:

The number of cardholders is also on the rise, with 182 million cardholders in 2018 and a predicted growth of nearly 6% to 193 million by 2023.

There are approximately 1,000 to 1,500 different consumer credit card options available in the U.S.

About 82% of U.S. adults had a credit card in 2022, making credit cards a common financial tool for many Americans.

By mid-2023, credit card users reached a total of 167.2 million, with new card accounts growing rapidly.

More and more Americans are using credit cards, with 82% of U.S. adults having one in 2022. This makes credit cards the most common first credit experience for young adults, with 73% of Americans having one by age 25.

People use credit cards for various reasons, with 35% primarily using them to earn rewards. Others use credit cards because they're safer to carry around than cash, or to cover expenses they can't afford.

Gen Z and Millennials are more likely to use credit cards to build credit, with 41% and 40% of them doing so, respectively. Baby Boomers, on the other hand, tend to use credit cards because they're safer than cash and to earn rewards.

Credit cards have become a popular payment method, with 31% of all payments made using them in 2022. This is the highest level since 2016, indicating that credit cards are gaining ground compared to cash or other forms of payment.

Households with higher incomes are more likely to use credit cards, with 37% of those earning $100,000 to $149,999 and 50% of those earning over $150,000 using them for payments.

Visa is the most common type of credit card, making up 58.3% of cards in circulation.

Choosing between Visa and Mastercard doesn't make a big difference, as both are widely accepted in the U.S. and internationally.

Visa handles more than double the amount of Mastercard in terms of purchase volume, showing its dominance in the market.

American Express and Discover process a fraction of what Visa does each year, but they still offer strong card options that are worth considering.

Annual Consumer Report shows that credit card debt is a growing concern. Credit card debt is up, and higher interest rates are making that debt more expensive.

In 2023, NerdWallet surveyed the credit card landscape and found that credit card debt is a significant issue. Nearly 1 in 5 cardholders had credit limits cut during the COVID-19 pandemic, causing distress for some.

Credit card debt can be a major problem, especially when consumers don't understand how credit cards work. In 2022, NerdWallet found that gaps in knowledge about how credit cards work can lead to trouble.

Here's a breakdown of the key findings from NerdWallet's annual consumer credit card report:

These findings highlight the importance of understanding credit cards and managing debt effectively. By being aware of these trends and statistics, consumers can make informed decisions about their credit cards and avoid financial trouble.

The average credit card debt per borrower in the US has reached an all-time high of $6,360 at the end of 2023, a 10% increase from the previous year.

Collectively, this adds up to $50 billion in new debt in a single quarter and a total $1.13 trillion in US credit card debt.

In 2022, 48% of all credit card users carried a balance at least once, with families with higher income levels being less likely to report revolving a balance.

However, even with higher income levels, 22% of credit cardholders are still uncertain they can pay their next credit card bill in full.

A 0% introductory APR card can buy you a number of months to pay off your balance without accruing interest expenses, and credit unions often offer lower regular APRs.

Delinquency rates have been steadily increasing, hitting 3.1% by the end of 2023, the highest rate since 2011.

In 2022, credit card issuers "charged off" $37 billion in balances, meaning they determined those balances weren't going to be paid.

Among households with revolving credit card debt, the average amount was $10,563 in September 2024.

43% of American adults who use credit cards said they have revolving debt, and 38% of all American adults reported the same.

In 2022, credit card payments accounted for 40% of total balances on general purpose credit cards, with repayments including interest.

44% of credit card payments were for the full balance in 2022, and paying your balance in full is the recommended course of action.

Here's a breakdown of credit card payments:

More than 40% of cardholders pay their balances in full each month, so they don't incur interest.

The average credit card interest rate is around 22.80% as of November 2024, according to the Federal Reserve. This rate can fluctuate, but card issuers must provide 45 days notice before making changes.

About 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.

The total amount paid in credit card interest topped $100 billion in 2022, with finance charges increasing steadily year-over-year before a two-year dip during the COVID pandemic.

Interest rates on store cards are higher than those on general purpose cards, with a 5-point difference in late 2022.

The credit card industry is a massive player in the US economy, with a staggering 157 million credit cards in circulation. This number is a result of the convenience and accessibility that credit cards offer to consumers.

Many Americans rely on credit cards for everyday purchases, with the average household in the US holding 2.3 credit cards. This widespread adoption has led to a significant increase in credit card debt, with the average American owing around $6,194 in credit card debt.

Credit card companies have responded to the growing demand for credit by offering a wide range of rewards programs and benefits, such as cashback, travel points, and purchase protection.

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

The largest credit card issuers in the country are giants like Chase and Citi, but also smaller institutions like community banks and credit unions.

JP Morgan Chase takes the top spot as the largest credit card issuer in the country, with a purchase volume of $602.11 billion in the first six months of 2023.

American Express comes in second, with a purchase volume of $547.56 billion during the same period.

The top 5 largest issuers, ranked by purchase volume, are:

These numbers give you an idea of the massive scale of the credit card industry, and the importance of choosing the right issuer for your needs.

American Express takes the top spot for customer service in the credit card industry. According to J.D. Power's 2023 study, they scored 657 out of 1,000 in the Satisfaction Index.

USAA and Navy Federal are not far behind, but their scores are not directly comparable to the other issuers. They scored 647 and 642 respectively, but J.D. Power says they did not meet the study's eligibility criteria.

The J.D. Power study examined seven factors that contribute to customer satisfaction, including account management, benefits, customer service, new account, rewards earning, rewards redeeming, and terms.

Here's a look at the top 5 credit card issuers for customer service, based on J.D. Power's 2023 study:

The study was based on responses from 31,418 credit card customers and was fielded from August 2022 through June 2023.

Let's take a look at how many credit cards people have by state. New Jersey takes the top spot with an average of 4.1 credit cards per resident.

Residents of the East Coast tend to have more credit cards, with New Jersey, Connecticut, and New York all ranking in the top five. In fact, New Jersey has the highest average number of credit cards, with residents holding an average of 4.1 cards.

California, Texas, and Illinois also rank high on the list, with an average of 3.6 credit cards per resident. This is interesting, as you might expect states with larger populations to have more credit cards, but the difference between states is relatively small.

Here's a list of the top 10 states with the most credit cards:

The four states with the fewest credit cards per consumer are Alaska, South Dakota, Vermont, and Wyoming, with an average of about 3.3 credit cards per consumer.

Credit card ownership varies significantly by age and demographic. Americans between the ages of 45 and 54 are most likely to have credit card debt, with 57% of this age group carrying debt.

Households with higher incomes are more likely to have credit cards, with 98% of those earning more than $100,000 per year holding a credit card. In contrast, only 57% of households with less than $25,000 in annual income have a credit card.

Asian Americans and Caucasian Americans are the most likely demographic groups to hold credit cards, with 92% and 87% of these groups, respectively, having a credit card. The number of credit cards varies by generation, with Baby Boomers and Generation X having the highest average number of credit cards, at 4.3.

Here's a breakdown of the average number of credit cards held by each generation:

The median credit card debt is highest among the 55 to 64 and 65 to 74 age groups, at $3,500, and the average credit card debt is highest among the 55 to 64 age group, at $7,720.

We've dug into the data to find out more about credit card usage in the US, and we've got some interesting findings to share. Our research shows that credit cards are a big part of American financial lives.

According to NerdWallet's original research, we've looked at economic data from financial institutions and government agencies to get a clearer picture of credit card usage. Our studies have been conducted using data from various sources, including surveys commissioned specially for NerdWallet.

NerdWallet's original credit card research has provided valuable insights into the world of credit cards, and we're excited to share some of our findings with you. We've analyzed economic data and survey results to give you a better understanding of credit card usage in the US.