From Yahoo Finance: 2025-04-28 17:42:00

The Federal Reserve reported that credit cards are the most popular payment method, with consumer preference shifting towards credit cards over cash or debit cards. National credit card debt has climbed to $1.21 trillion, with 82% of American adults owning at least one credit card and an average of 3.9 cards per person. The average credit utilization rate nationally is 23%, and the average annual spend on credit cards is $8,823. Credit card issuers earned over $130 billion in interest and fees in 2022, with an average APR increase from 16.28% in 2020 to 21.91% in February 2025.

The credit card industry is dominated by four main networks: Mastercard, Visa, Discover, and American Express. Visa and Mastercard hold 85% of the market, with nearly 4,000 issuers nationwide. The top ten issuers include JPMorgan Chase, and common fees include annual fees averaging $105 and late fees around $32. Consumers are accruing larger balances, with the average balance surpassing $6,700 in 2024. Credit card delinquency rates have increased, with 7.2% of credit card balances becoming delinquent by the end of the year.

Credit cards offer the opportunity to earn rewards like cash back, airline miles, or points on select purchases. Consumers earned $41.1 billion in rewards in 2022, a 58% increase from 2019, with the average rewards rate at 1.6 cents per dollar. Overall, credit card usage continues to rise, impacting consumer debt and financial habits across various demographics.



Read more at Yahoo Finance: Credit card debt statistics (2025): See the trends