Credit Card Statistics 2024: Key Trends, Usage, Debt Insights, and Emerging Technologies
Barry Elad
Updated · Oct 25, 2024
Contents
- Editor’s Choice: Key Milestones
- Credit Card Usage and Consumer Preferences
- Credit Card Debt Statistics
- Credit Card Debt by Age
- Credit Card Debt by Income
- Credit Utilization Ratio Statistics
- Credit Card Demographics Statistics
- Credit Card Network and Issuers Statistics
- Technological Innovations in Credit Cards
- Largest Credit Card Issuers
- Credit Card vs. Cash Statistics
- Recent Developments
- Conclusion
Imagine a world where credit cards are not just a convenient tool for purchasing, but a financial lifeline shaping the behavior and preferences of millions. Credit cards have revolutionized spending habits, offering not just a mode of payment but a way to manage finances with flexibility. In the United States, nearly every consumer relies on this piece of plastic, and the numbers surrounding its usage, debt, and trends are both staggering and insightful. As we delve into the latest credit card statistics, we uncover key trends shaping the future of credit in a constantly evolving financial landscape.
Editor’s Choice: Key Milestones
- 191 million Americans held at least one credit card in 2023, marking a steady increase in adoption over the last few years.
- In 2023, the average American household carried $6,270 in credit card debt, a notable increase from $5,850 in 2022.
- The total U.S. credit card debt reached an all-time high of $1 trillion in 2023, reflecting growing reliance on credit.
- 67% of adults in the U.S. had at least one active credit card account by the end of 2023.
- Rewards cards continue to dominate, with 75% of cardholders using cards that offer cash back or travel points.
- Contactless payments saw a 53% growth from 2022 to 2023, driven by the demand for touch-free transactions.
- The average credit card interest rate in 2023 reached 20.2%, up from 18.7% the previous year, reflecting inflationary pressures.
Credit Card Usage and Consumer Preferences
- In 2023, 50.6% of U.S. adults reported using credit cards as their primary payment method, outpacing both cash and debit card usage.
- Millennials led the charge in credit card usage, with 89% owning at least one card, compared to 81% of Gen Xers and 65% of Baby Boomers.
- 79% of cardholders cited cashback rewards as the most important factor when choosing a credit card in 2023.
- Digital wallets like Apple Pay and Google Pay saw a 45% increase in credit card linkage, indicating a growing consumer preference for mobile payments.
- Online shopping accounted for 42% of all credit card transactions in 2023, underscoring the shift towards e-commerce.
- The average U.S. consumer carried four credit cards in 2023, with high-income earners more likely to have six or more.
- 60% of Americans actively use rewards or loyalty programs associated with their credit cards, and 82% of them prioritize cards with travel benefits over others.
Credit Card Debt Statistics
- The total revolving debt in the U.S., primarily credit card debt, reached $1.03 trillion by the end of 2023.
- On average, 39% of credit card holders carried a balance month to month in 2023, up from 36% in 2022.
- 51% of adults admit to carrying credit card debt at some point in 2023, with high interest rates being the primary driver.
- 35% of Americans used credit cards to cover unexpected expenses, including medical bills and emergency repairs, in 2023.
- Credit card delinquencies rose to 3.05% by the third quarter of 2023, up from 2.55% in the same period of 2022.
- $960 billion of the total credit card debt was categorized as revolving debt, indicating that many cardholders carry balances rather than paying off their monthly bills.
- Consumers in California, Texas, and Florida contributed the most to the growing national credit card debt, with each state recording over $100 billion in credit card balances by 2023.
Credit Card Debt by Age
- Gen Z (ages 18-24) saw a 6% increase in credit card debt in 2023, averaging $2,780 per person, reflecting their growing entry into credit markets.
- Millennials (ages 25-40) carry the highest average debt, with $7,160 per person in 2023, up from $6,820 in 2022.
- Gen X (ages 41-56) leads in credit card balances, averaging $8,120 in 2023, representing a 4.3% increase from the previous year.
- Baby Boomers (ages 57-75) saw a slight decline in debt, with an average balance of $5,650, down from $5,720 in 2022, as many are prioritizing debt repayment.
- Silent Generation (ages 76 and older) had the lowest average credit card debt in 2023, at $3,450, but this age group is also most likely to miss payments due to fixed incomes.
- Millennials were the most likely to use credit cards for emergency expenses, with 58% indicating that unexpected costs were a key reason for increasing debt in 2023.
- Gen Z cardholders, although younger, reported the highest increase in credit card applications, with 32% of them opening new accounts in 2023.
| Age Group | Average Debt (2022) | Average Debt (2023) | Change (%) |
| Gen Z (18-24) | N/A | $2,780 | 6% |
| Millennials (25-40) | $6,820 | $7,160 | 5% |
| Gen X (41-56) | $7,770 | $8,120 | 4.30% |
| Baby Boomers (57-75) | $5,720 | $5,650 | -1.20% |
| Silent Generation (76+) | N/A | $3,450 | N/A |
Credit Card Debt by Income
- Households earning less than $40,000 annually had an average credit card balance of $3,800 in 2023, up 7.5% from 2022.
- Middle-income households (earning between $40,000 and $80,000) carried an average credit card balance of $5,650 in 2023, a 4% rise from the previous year.
- Households with incomes over $100,000 had significantly higher debt, averaging $12,200 in credit card balances by the end of 2023, reflecting their higher spending capacity.
- The top 20% of earners (above $150,000) held 33% of the total U.S. credit card debt in 2023, despite comprising a smaller percentage of the population.
- Low-income households saw a 9% increase in credit card debt, attributed to rising living costs and reliance on credit for day-to-day expenses.
- The credit utilization rate was highest among households earning between $50,000 and $75,000, with an average utilization of 32% in 2023.
- High-income earners were more likely to use credit cards for large purchases, with 45% using them for items over $1,000 compared to 23% of lower-income groups.
| Income Group | Average Debt (2022) | Average Debt (2023) | Change (%) |
| Less than $40,000 | $3,535 | $3,800 | 8% |
| $40,000 – $80,000 | $5,430 | $5,650 | 4% |
| Over $100,000 | $11,800 | $12,200 | 3.40% |
| Top 20% Earners (>$150,000) | N/A | 33% of total U.S. debt | N/A |
Credit Utilization Ratio Statistics
- The average credit utilization ratio in 2023 was 29%, with financial experts generally recommending a utilization rate below 30% to maintain a healthy credit score.
- 39% of consumers in 2023 maintained a credit utilization ratio above 30%, potentially impacting their credit scores negatively.
- Cardholders with a utilization ratio under 10% were more likely to have excellent credit scores, with 88% maintaining a FICO score over 750.
- Consumers with a utilization ratio of over 50% saw a significant drop in their credit scores, with an average decrease of 40 points in 2023.
- Women had a slightly lower average utilization rate at 27%, compared to 31% for men in 2023.
- The highest utilization rates were found among cardholders aged 25-34, with an average of 36%, reflecting this group’s tendency to carry higher balances relative to available credit.
- Cardholders who regularly paid more than the minimum balance had an average utilization ratio of 18% in 2023, compared to 45% for those who only made minimum payments.
Credit Card Demographics Statistics
- Women made up 52% of all credit cardholders in 2023, slightly outpacing men in ownership rates.
- Hispanic Americans saw a 15% increase in credit card ownership in 2023, with 67% of the demographic holding at least one card, up from 58% in 2022.
- African American households had the highest credit card utilization rate, averaging 36% in 2023.
- White Americans held 60% of the total credit card debt in the U.S., with an average balance of $6,500 per person in 2023.
- Asian Americans had the highest average credit score among all racial groups, with a median score of 760 in 2023.
- Single households were more likely to carry credit card debt, with 65% holding a balance month-to-month compared to 43% of married couples in 2023.
- College graduates were 30% more likely to own rewards credit cards compared to non-degree holders, with 82% of graduates holding at least one rewards-based card in 2023.
Credit Card Network and Issuers Statistics
- Visa remained the largest credit card network in the U.S. in 2023, processing 53% of all credit card transactions.
- Mastercard held a 31% market share in 2023, making it the second-largest network by transaction volume.
- American Express cards accounted for 15% of total credit card spending in 2023, driven by its strong presence in the premium card market.
- Discover maintained 7% of the market in 2023, with a focus on cash-back rewards and no annual fees.
- Chase was the largest credit card issuer in 2023, with 93 million cardholders and a total credit line of over $785 billion.
- Capital One issued more than 75 million credit cards in 2023, positioning itself as a leader in both the subprime and prime credit card markets.
- Citi recorded $190 billion in total purchase volume for credit cards in 2023, making it one of the top five issuers in the U.S.
- Bank of America saw a 6% growth in its credit card business in 2023, driven by its cash rewards program, with 56 million cardholders.
- Credit unions collectively issued 21 million credit cards in 2023, offering competitive interest rates and rewards programs that attracted 4% of the total U.S. market.
Technological Innovations in Credit Cards
- Contactless payments surged in popularity, with 53% of U.S. cardholders using tap-to-pay features in 2023, up from 34% in 2022.
- Mobile wallets such as Apple Pay and Google Pay saw a 45% growth in adoption, with more than 60 million U.S. consumers linking their credit cards to mobile payment apps in 2023.
- Virtual credit cards, offering single-use numbers for secure online transactions, experienced a 25% increase in use in 2023.
- Artificial intelligence (AI) is now used by 73% of credit card issuers to detect and prevent fraud in real-time, significantly reducing fraudulent activity by 40% in 2023.
- Biometric authentication, including fingerprint and facial recognition, was adopted by 15% of U.S. cardholders for securing credit card transactions in 2023.
- Crypto-linked credit cards emerged as a growing trend, with 11% of U.S. cardholders using them to earn cryptocurrency rewards on everyday purchases.
- Blockchain technology is being piloted by 5% of U.S. financial institutions for securing credit card networks and improving transaction speeds, with full-scale implementation expected by 2025.
- 3D Secure 2.0, the latest version of online payment authentication, became widely adopted in 2023, providing an extra layer of security for 58% of online credit card transactions.
- The buy now, pay later (BNPL) model became integrated into more credit cards in 2023, with 22% of cardholders opting for installment payment options on major purchases.
| Innovation | Percentage Growth/Adoption |
| Contactless payments | 53% of cardholders |
| Mobile wallets (Apple Pay, Google Pay) | 45% growth |
| Virtual credit card usage | 25% increase |
| AI-powered fraud detection | 73% of issuers, 40% fraud reduction |
| Biometric authentication (fingerprint, facial) | 15% of cardholders |
| Crypto-linked credit cards | 11% of cardholders |
| Blockchain technology (piloted by issuers) | 5% |
| 3D Secure 2.0 adoption for online payments | 58% of transactions |
| Buy Now, Pay Later (BNPL) | 22% of cardholders |
Largest Credit Card Issuers
- Chase retained its position as the largest credit card issuer in the U.S. in 2023, with 93 million active cardholders.
- American Express had the highest average spend per cardholder, with cardholders averaging $19,100 in annual spending.
- Capital One issued over 75 million credit cards in 2023, with a focus on cash-back rewards and subprime lending.
- Bank of America grew its credit card portfolio to 56 million accounts by the end of 2023, largely due to the popularity of its cash rewards and travel cards.
- Citi reported $190 billion in total purchase volume in 2023, maintaining a strong position among premium card issuers.
- Discover saw an increase in cardholders, reaching 50 million accounts, while emphasizing no-fee cards with generous cash-back options.
- Synchrony Financial, a major issuer of store-branded credit cards, serviced 69 million cardholders in 2023.
- USAA issued credit cards to 13 million members, primarily military personnel and their families, with a strong focus on low interest rates and rewards.
- Wells Fargo expanded its credit card portfolio by 8% in 2023, focusing on enhancing its cash rewards and travel rewards programs.
| Issuer | Market Share/Number of Users |
| Visa | 53% |
| Mastercard | 31% |
| American Express | 15% |
| Discover | 7% |
| Chase | 93 million cardholders |
| Capital One | 75 million cardholders |
| Citi | $190 billion purchase volume |
| Bank of America | 56 million cardholders |
| Synchrony Financial | 69 million cardholders |
| USAA | 13 million cardholders |
Credit Card vs. Cash Statistics
- Credit card payments accounted for 60% of all U.S. transactions in 2023, with cash usage dropping to just 19%.
- Mobile wallet transactions grew by 35% in 2023, capturing a larger share of payment methods compared to traditional debit card and cash payments.
- 66% of U.S. consumers preferred credit cards for online purchases, while only 5% opted for cash on delivery.
- Contactless credit card payments surpassed 25% of in-store transactions, significantly reducing the need for cash in retail environments.
- Cash-back rewards were cited by 75% of cardholders as the top reason for preferring credit cards over cash for everyday purchases in 2023.
- Cash withdrawals from ATMs fell by 13% in 2023, reflecting the growing trend toward digital and card-based payments.
- Consumers under 35 were twice as likely to use credit cards as their primary payment method compared to older generations, further shifting the balance away from cash.
- Peer-to-peer payment apps such as Venmo and Zelle, often funded by linked credit cards, saw a 41% rise in usage, contributing to the decline in cash transactions.
- The average cash transaction in 2023 was $22, while the average credit card transaction was significantly higher, at $85.
Recent Developments
- The Federal Reserve increased interest rates, leading to a rise in the average credit card APR to 20.2% in 2023.
- The Consumer Financial Protection Bureau (CFPB) reported a 12% increase in credit card complaints, largely driven by billing errors and fraudulent transactions.
- Buy Now, Pay Later (BNPL) programs became available on more credit cards in 2023, with 22% of cardholders opting for installment plans.
- Environmental, social, and governance (ESG) concerns influenced the launch of green credit cards from major issuers, with 5 million accounts opened by environmentally-conscious consumers.
- AI-powered fraud detection systems helped reduce credit card fraud by 40% in 2023, according to industry data.
- Crypto-linked credit cards gained momentum, with 11% of U.S. consumers using these cards to earn cryptocurrency rewards.
- The credit card delinquency rate rose to 3.05% in the third quarter of 2023, reflecting economic pressures on consumers.
- Digital-only banks saw an 18% increase in credit card applications in 2023, as consumers sought convenience and competitive interest rates.
- Contactless credit cards were adopted by 53% of U.S. consumers in 2023, with usage growing across both e-commerce and in-store transactions.
Conclusion
As we step into a future where credit cards are more than just a payment method, it’s clear that innovations like contactless payments, AI-driven security, and crypto-linked cards are shaping the financial landscape. The statistics from 2023 reveal a world increasingly reliant on credit, where consumer preferences, debt trends, and technological advances are reshaping how we use and think about credit cards. As these trends evolve, one thing remains certain: credit cards will continue to play a critical role in the way we spend, borrow, and manage our finances.
Barry Elad
Barry is a lover of everything technology and finance (FinTech). Figuring out how the software works and creating content to shed more light on the value it offers users is his favorite pastime. When not evaluating apps or programs, he's busy trying out new healthy recipes, doing yoga, meditating, or taking nature walks with his little one.
