U.S. Credit card statistics and trends 2024

Did you know that credit cards are used for 32% of consumer purchases? Credit cards have become a go-to tool for managing daily spending, earning rewards, and building credit. As mobile wallets and digital payments continue to rise, using credit cards has never been easier or more convenient.

More people are relying on credit cards not just for big-ticket items, but for everyday spending as well.

Curious about how credit cards stack up against cash, or how their usage varies across different income and age groups? Explore the latest credit card statistics to see how credit card is evolving.

Credit card statistics and trends infographic.

Explore insights into credit card trends, adoption rates, and payment preference.

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Cash vs credit card statistics

Key findings:

• Credit cards accounted for 32.6% of consumer’s monthly payments, making it the most popular payment method.
• 79% of consumers carry cash at least one day during the week.
• Credit cards accounted for 22% of transactions in online purchases and 39% of in-person transactions.
• Cash-preferred shoppers use credit cards for 15% of their purchases.

As credit cards become more central to daily spending, people are increasingly using them not just for major purchases, but for everyday transactions too. Credit cards accounted for 32.6% of consumers’ monthly purchases.

Over the past seven years, the number of people who prefer using credit cards for in-person payments has jumped from 22% to about 39%. But even as credit card usage has grown, cash still plays an important role in people's daily lives. Around 79% of consumers continue to carry cash at least one day during the week. This data shows that while credit cards are popular, many still like to have cash on hand as a backup.

Surprisingly, even consumers who prefer using cash for their purchases still turn to credit cards for 15% of their transactions—5% more often than those who typically prefer debit cards. This highlights the importance of accepting credit cards in-person, as there's a chance that cash-preferred shoppers will use a credit card when making a purchase.

Credit card usage statistics

Key findings:

• The number of credit cards in circulation increased to 543.1 million in Q1 2024, up from 523.2 million in Q1 2023.
• Credit card usage for all transactions has increased from 18.18% in 2016 to 32.61% in 2023.
• Consumers who prefer using credit cards for in-person payments grew from 25% to 39%, approximately.
• In 2022, credit cards surpassed both cash and debit cards to become the most popular payment method, making up 30.77% of transactions

Over the past seven years, we've seen cash take a backseat in the world of payments, dropping from 31.82% of transactions in 2016 to just 15.22% in 2023. At the same time, credit and debit cards have become the go-to choice for many people. By 2022, credit cards overtook cash and debit cards as the most popular payment method, making up 30.77% of transactions.

Furthermore, the number of credit cards in circulation increased to 543.1 million in Q1 2024, up from 523.2 million in Q1 2023.

This shift isn't too surprising when you think about how much more convenient it is to use digital and card-based payment methods these days, especially with the rise of e-commerce and the push towards contactless payments during the pandemic in 2019.

Credit cards have increasingly become the preferred payment method, not just for online transactions, but also for in-person transactions. According to The Federal Reserve, the share of consumers who prefer using credit cards for in-person payments grew from 25% to 39%, approximately.

Credit cards usage and debt across different income groups

Key findings:

• 97% of households with an income of $100,000 or more have credit cards.
• Households earning over $100,000 rely on credit cards for 89% of their payments.
• 56% of households with incomes below $25,000 carry credit card debt.

People with higher incomes are more likely to have credit cards, and they tend to use them more often for their transactions. In fact, households earning over $100,000 use credit cards for about 89% of their payments, while those with lower incomes don't use them as frequently.

Lower-income households are also more likely to not pay off their full credit card bill each month. For instance, 56% of card holders earning less than $25,000 carry a balance, compared to just 37% of those earning $100,000 or more.

In general, higher-income households have easier access to credit cards and are less likely to accumulate debt. On the other hand, lower-income households often rely on credit cards to cover ongoing expenses, which can lead to carrying balances and potentially higher interest payments, adding financial stress.

Credit cards usage and debt across different age groups

Credit cards have become a key part of how people manage their money. Whether it's handling daily expenses, earning rewards, or building credit, more and more adults are relying on credit cards.

Key findings:

• More than 82% of adults had a credit card as of 2023.
• Adults aged 25-54 use credit cards for 35% of their transactions.
• 53% of the 30-44 group carried credit card debt at least once in the past year.

According to the US Federal Reserve, as people get older, they're more likely to have a credit card. Young adults aged 18-29 have the lowest ownership at 65%. As people get older, credit card ownership jumps significantly. By the time they’re 60+, a whopping 91% of people have a credit card in their wallet.

When it comes to credit card usage, adults aged 25-54 lead the way, using credit cards for 35% of their transactions—the highest frequency among all age groups.

Finally, credit card debt is a common reality for many cardholders. According to TransUnion, total credit card balances surpassed $1 trillion for the second consecutive quarter in Q1 2024, representing an 11.3% year-over-year (YoY) increase.

When we look more closely, 54% of those aged 45-59 and 53% of the 30-44 group carried credit card debt at least once in the past year. This isn’t too surprising, given that these age groups are often filled with financial responsibilities like mortgages, family expenses, and possibly even college tuition for their kids. On the other hand, younger adults (18-29) and seniors (60+) are less likely to carry debt, with 45% and 39% respectively.

Why do consumers use credit cards?

According to TransUnion, consumers are still leaning heavily on credit cards to manage their expenses, especially with high inflation making everything more expensive. This trend shows how important credit cards are for helping people navigate tough economic times and keep their standard of living.

Consumer confidence in credit card applications remains high, even in the face of increased denial rates. In 2023, 63% of adults were "very confident" that their application would be approved. This steady confidence suggests that even with economic uncertainties, most people still feel secure in their ability to access credit when they need it.

What does the future credit card adoption look like?

The future of credit card adoption is looking promising. As consumers increasingly shop online, credit cards have become the preferred payment method due to their convenience, security, and the attractive rewards they offer.

With the rise of mobile wallets like Apple Pay and Google Pay, it's now easier than ever to link your credit card and make payments with just a tap. This innovation makes in-person transactions quicker and safer, as consumers no longer need to carry physical credit cards.

FAQ

What payment method is the most popular one?

Credit cards are the most popular payment method, accounting for 32% of consumers' monthly payments.

When did credit cards become the most popular payment method?

In 2022, credit cards surpassed both cash and debit cards, becoming the most popular payment method by making up 30.77% of all transactions.

Is credit card usage increasing?

Credit card usage has grown significantly, rising from 18.18% of all transactions in 2016 to 32.61% in 2023.

How often do people use credit cards?

Credit cards are used for 22% of online purchases and 39% of in-person transactions.

What age group uses credit cards the most?

Adults aged 25-54 use credit cards the most frequently, accounting for 53% of their transactions.

What age group has the most credit card debt?

Adults aged 45-59 have the most credit card debt, with 54% of cardholders in this age group carrying debt at least once in the past year.