Many of the credit card offers that appear on this site are from credit card companies from which we receive financial compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). However, the credit card information that we publish has been written and evaluated by experts who know these products inside out. We only recommend products we either use ourselves or endorse. This site does not include all credit card companies or all available credit card offers that are on the market. See our advertising policy here where we list advertisers that we work with, and how we make money. You can also review our credit card rating methodology.
Founder and CEO of Upgraded Points, Alex is a leader in the industry and has earned and redeemed millions of points and miles. He frequently discusses the award travel industry with CNBC, Fox Business...
With years of experience in corporate marketing and as the executive director of the American Chamber of Commerce in Qatar, Keri is now editor-in-chief at UP, overseeing daily content operations and r...
We may be compensated when you click on product links, such as credit cards, from one or more of our advertising partners. Terms apply to the offers below. See our Advertising Policy for more about our partners, how we make money, and our rating methodology. Opinions and recommendations are ours alone.
It may seem like every other piece of mail you get is a “You’re approved!” letter from a credit card company or the option to finance anything, which is just so tempting. Want that new Peloton bike? Well, it could be yours for just $39 a month! While this may seem like a good deal, it’s easy to find yourself spending too much, sinking into a bit of debt (or a lot), and having way too many credit cards.
Spending on credit cards is easy by design. All it takes is a swipe, and that shiny new toy is yours. If this sounds all too relatable, you’re not alone. During the fourth quarter of 2023, credit card balances in the U.S. increased by $50 billion and now stand at $1.13 trillion, according to the “Quarterly Report on Household Debt and Credit,”¹ released by the Federal Reserve Bank of New York.
As of Q3 2023, the average American carries $6,501 in credit card debt, an increase of 17% from Q3 2022, according to data from Experian’s “Average Credit Card Debt” report.² Keep reading to find out more credit card facts and statistics, including credit card spending statistics, average credit card debt, spending habits when it comes to cash vs. credit cards, what banks look at when issuing credit cards, how to get a credit card, and frequently asked questions.
Keep reading to find out more credit card facts and statistics, including credit card spending statistics, average credit card debt, spending habits when it comes to cash vs. credit cards, what banks look at when issuing credit cards, how to get a credit card, and frequently asked questions.
Key Facts and Statistics
The average number of credit cards per person in the U.S. is 3.9.³
Gen Z holds the lowest average number of credit cards at 2.³
Adults with an income under $100,000 who have credit cards are more likely to use them to carry balances from month to month.⁴
87% of white adults, 92% of Asian adults, 71% of Black adults, and 73% of Hispanic adults have credit cards.⁴
There are credit card issuers and credit card networks. A credit card issuer is a financial institution that gives you a credit card. A credit card network is a company that provides a communication system between a merchant and an issuer.
Credit card networks include Visa, Mastercard, American Express, and Discover.
The 8 largest credit card issuers generated $4.642 trillion in purchase volume in 2023. They accounted for 79.76% of the industry total.⁵
Studies show that shoppers with credit cards are willing to spend more on items, check out with bigger baskets, and focus on and remember more product benefits rather than costs.⁶
The average credit card debt per household is $10,848.⁷
Credit card debt was the most widely held type of debt (number of accounts) as of 2023.⁸
Americans in the $90,000 to $100,000 income range had an average credit card debt of $11,210.⁸
Credit cards as a form of payment have been increasing, from 27% of payments in 2020 to 31% of payments in 2022.⁹
Credit cards are the most frequently used form of online payment, accounting for a 54% share of payments.¹⁰
U.S. Credit Card Statistics by Generation, Income, and Ethnicity
1. The average American holds 3.9 active credit cards.
According to Experian, U.S. consumers, on average, carry fewer cards today than they did in 2017 (an average of 4.2 active credit cards). As of Q3 2023, the average number of credit cards held is 3.9.³
2. Gen Z holds the lowest average number of credit cards.
Baby boomers and Generation X hold the highest average number of credit cards at 4.3, and Gen Z holds the lowest average number of credit cards at 2.³
3. Adults with an income under $100,000 who have credit cards are more likely to use them to carry balances from month to month.
When you break down credit card ownership by income, the results are interesting. Most people with an income of over $100,000 have a credit card. Adults with an income under $100,000 who have credit cards are more likely to use them to carry balances from month to month.³
4. 87% of white adults, 92% of Asian adults, 71% of Black adults, and 73% of Hispanic adults have credit cards.
Credit card usage also varies by race and ethnicity. 87% of white adults have a credit card, and 42% of those credit card users have carried over a balance at least once in the past year. Over 90% of Asian adults have a credit card, but just 2.7 in 10 Asian adults have carried a balance at least once in the past year. Meanwhile, Black and Hispanic adults were more likely to carry balances on their credit cards than other racial or ethnic groups. Of the 71% of Black adults holding credit cards, over 70% have carried a balance at least once in the past year. 73% of Hispanic adults hold credit cards, and 62% have carried a balance at least once in the last year.³
Image Credit: Upgraded Points
You also see a slight difference in credit card debt by race. White cardholders have $7,942 in credit card debt, Asian cardholders carry $7,660 in credit card debt, Hispanic cardholders have $6,849, and Black cardholders have $6,172 in credit card debt.⁸
The Difference Between a Credit Card Issuer and a Network
5. What is the difference between a credit card issuer and a credit card network?
While there are many credit card issuers, there are only a select few credit card networks. So, what exactly is the difference between a credit card issuer and a credit card network?
A credit card issuer is a financial institution that gives you a credit card. For example, Chase, Wells Fargo, U.S. Bank, and Bank of America are all credit card issuers. A credit card network is a company that provides a communication system between a merchant and an issuer in order to complete a credit card transaction.¹⁰ Visa, Mastercard, American Express, and Discover are credit card networks.
6. Credit card networks include Visa, Mastercard, American Express, and Discover.
Some credit card networks are more popular than others. When looking at the number of cards circulating for each network in the U.S., the difference is ostensible.
Visa: 391 million credit cards in circulation for the 3 months ending June 30, 2023¹³
Mastercard: 330 million credit cards in circulation for the FY 2023¹⁴
Discover: 66.3 million credit cards in circulation in 2023¹⁵
American Express: 80.2 million proprietary credit cards in circulation in 2023 worldwide¹⁶
Image Credit: Upgraded Points
Credit Card Spending Habits in the U.S.
7. The 8 largest credit card issuers generated $4.642 trillion in purchase volume in 2023, up 11.9% from 2022. They accounted for 79.76% of the industry’s $5.821-trillion total.
According to the 2024 Nilson Report,⁵ the breakdown of purchase volume from the top issuers of general-purpose credit cards in the U.S. is below:
Chase: $1.246 billion
American Express: $1.124 billion
Citi: $594 billion
Capital One: $575 billion
Bank of America: $494 billion
Discover: $218 billion
U.S. Bank: $200 billion
Wells Fargo: $192 billion
Image Credit: Upgraded Points
8. Studies show that shoppers with credit cards will spend more on items, check out with bigger baskets, and focus on and remember more product benefits rather than costs.
Credit cards are an easy scapegoat when overspending occurs and might actually be the right source of blame. According to the “Neural Mechanisms of Credit Card Spending” report,¹⁵ studies show that shoppers with credit cards will spend more on items, check out with bigger baskets, focus on and remember more product benefits rather than costs, and make more indulgent and unplanned purchase choices.
9. The average credit card debt per household is $10,848.
The average credit card debt per household in the U.S. is $10,848 as of Q4 2023, according to Wallethub.⁷
10. Credit card debt was the most widely held type of debt as of 2023.
The New York Fed also reported that credit card debt was the most widely held type of debt as of 2023. In fact, as of the end of 2023, Americans owed $1.13 trillion, which was a $50 billion (4.6%) increase from 2022.⁸
11. Americans in the $90,000 to $100,000 annual income range had a mean value of balance on credit cards of $11,210.
When broken down by household income, it may come as no surprise that the higher the household income, the greater the credit card debt. Americans in the $90,000 to $100,000 annual income range had an average credit card debt of $11,210.⁷ For those with a family income of $20,000 to $39.900, the mean value of balance on credit cards was $3,840.⁷
Cash vs. Credit Cards
12. Credit card use as a form of payment has been increasing, from 27% of payments in 2020 to 31% in 2022.
According to the “2023 Findings From the Diary of Consumer Payment Choice,”⁹ a survey by the Federal Reserve, cash’s share of all payments in 2022 remained consistent with 2020 at 18%. Credit cards as a form of payment have increased since 2016, from 27% in 2020 to 31% in 2022. This could be because the pandemic fundamentally changed shopping habits, resulting in shoppers doing most of their shopping online or using credit cards as a way to have less contact with others.
13. Credit cards are the most frequently used payment type online, accounting for a 54% share of payments.
While cash is the most popular payment method for in-store purchases, credit card usage is favored for online purchases.¹⁰ It accounts for a 54% share of payments, followed closely by debit cards (49%) and PayPal (42%). Gift cards (31%) and “buy now, pay later” systems (10%) also play a role, demonstrating the increasing complexity of the online payment ecosystem.
Final Thoughts
Based on the above credit card facts, it doesn’t seem like credit card spending or debt is going away soon. If you are considering putting that large purchase amount on your credit card for the points or thinking about opening a new credit card to make a balance transfer, remember these are still things you will need to pay off. If not paid off in full every month, you will incur a hefty interest charge. Consider all the facts listed above before getting into unneeded debt.
References
¹ Federal Reserve Bank of New York. (2024 February). Quarterly Report on Household Debt and Credit. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4 ² Horymski, C. (2024, March 11). Average Credit Card Debt Increases 10% to $6,501 in 2023. Experian. https://www.experian.com/blogs/ask-experian/state-of-credit-cards/ ³ Horymski, C. (2024, April 24). What Is the Average Number of Credit Cards? Experian. https://www.experian.com/blogs/ask-experian/average-number-of-credit-cards-a-person-has/⁴ The Federal Reserve. (2023, June 2). Economic Well-Being of U.S. Households in 2022 – May 2023. https://www.federalreserve.gov/publications/2023-economic-well-being-of-us-households-in-2022-banking-credit.htm ⁵ Nilson Report. (2024 February). Largest US Issuers of General Purpose Credit Cards. https://nilsonreport.com/newsletters/1258/ ⁶ Banker, S., Dunfield, D., Huang, A., Prelec, D. (2021, February 18). Neural Mechanisms of Credit Card Spending. Scientific Reports. https://www.nature.com/articles/s41598-021-83488-3 ⁷ McCann, A. (2024, May 9). Average Credit Card Debt. WalletHub. https://wallethub.com/edu/cc/average-credit-card-debt/25533 ⁸ Research and Statistics Group (2024 August). Household Debt and Credit Report (Q4 2023). The New York Fed. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4 ⁹ Cubides, E., O’Brien, S. (2023, May 5). 2023 Findings from the Diary of Consumer Payment Choice. Federal Reserve Bank of San Francisco. https://www.frbsf.org/cash/wp-content/uploads/sites/7/2023-Findings-from-the-Diary-of-Consumer-Payment-Choice.pdf ¹⁰ YouGov (2024, February 12). Cash remains king – 67% of Americans still use traditional in-store payment. https://business.yougov.com/content/48650-cash-remains-king-67-of-americans-still-prefer-traditional-in-store-payment ¹¹ The Federal Reserve (2022, March 10). Survey of Consumer Finances (SCF). https://www.federalreserve.gov/econres/scfindex.htm https://www.frbsf.org/cash/publications/fed-notes/2023/may/2023-findings-from-the-diary-of-consumer-payment-choice/ ¹² Cothern, L. (2023, January 11). What Is a Credit Card Network and How Do They Work? Credit Karma. https://www.creditkarma.com/credit-cards/i/credit-card-networks ¹³ Visa (n.d.) Operational Performance Data, Q4FY23. https://s1.q4cdn.com/050606653/files/doc_financials/2023/q4/Q4FY23-Visa-Operational-Performance-Data.pdf ¹⁴ Mastercard (n.d.) Supplemental Operational Performance. https://s25.q4cdn.com/479285134/files/doc_financials/2024/q1/1Q24-Mastercard-Supplemental-Operational-Performance-Data.pdf ¹⁵ Nilson Report (Issue 1256, 2024, January). https://fasterpaymentscouncil.org/userfiles/2080/files/Nilson%20Report_First%20Look_FPC_01-2024.pdf ¹⁶ American Express (n.d.). 2023 Annual Report. https://s26.q4cdn.com/747928648/files/doc_financials/2023/ar/American-Express-Annual-Report-2023.pdf
![Credit Card Facts & Statistics – Debt, Spending & More [2024]](https://upgradedpoints.com/wp-content/uploads/2023/03/upgradedpoints-creditcardstats-graphic-v1_og_1920x1080.png?auto=webp&disable=upscale&width=1420&height=650&fit=crop)
![CareCredit® Credit Card — Review [2024]](https://upgradedpoints.com/wp-content/uploads/2020/05/Synchrony-CareCredit-Card.png?auto=webp&disable=upscale&width=700)
![NASCAR® American Express® Card – Review [2024]](https://upgradedpoints.com/wp-content/uploads/2024/09/nascar-amex.png?auto=webp&disable=upscale&width=700)
