Astounding Credit Card Statistics, Vol. 2

In our latest installment of Astounding Credit Card Statistics, we’ll be looking at some very interesting – and highly informative – numbers on cardholders’ credit limits, usage, and more! In the spirit of educating merchants just like you, Vision Payment Solutions believes in keeping its client base informed and up to date on all matters credit card related. After all, knowledge is half the battle!

Credit Limits & Usage

  • In 2007, 97 percent of consumers indicated they used a credit card in the past year. In 2008, that number sank to 72 percent. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)
  • Credit card usage fell dramatically from 2007 to 2008, with only 64 percent of consumers indicating they used a credit card in the month preceding the September 2008 survey, compared to 87 percent of consumers in 2007 — a 23 percentage point decline. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)
  • 80 percent of Americans 65 or older indicated they used a credit card in the month preceding the September 2008 survey. That’s 13 points higher than any other age group. They also used debit cards far less than other age groups. Only 47 percent of those over 65 said they had used a debit card in the month before the survey, 19 points lower than any other age group. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)
  • 63 percent of Americans aged 25 to 34 indicated they had used a credit card in the month preceding the September 2008 survey. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)
  • Just 51 percent of Americans aged 18 to 24 indicated they had used a credit card in the month preceding the September 2008 survey. 71 percent of that age group said that they had used a debit card in the same period. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)
  • 92 percent of cards included a fee for exceeding the credit limit, including 100 percent of all student cards. The amount of the over-limit fee is $39 on most accounts. (Source: Pew Safe Credit Cards Project, March 2009)
  • For families having any bank-type cards, the median number of such cards remained at 2; the median credit limit on all such cards rose 21.4 percent, to $18,000, and the median interest rate on the card with the largest balance (or on the newest card, if no outstanding balances existed) rose 1.0 percentage point, to 12.5 percent. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
  • 58 percent of Hispanics have not used a credit card in the past 30 days. (Source: Experian Consumer Research study, November 2008)
  • 31 percent of Hispanics typically pay cash for their purchases. (Source: Experian Consumer Research study, November 2008)
  • Approximately 14 percent of Americans use 50 percent or more of their available credit. (Source: Experian National Score Index Study, February 2007)
  • At about 17 percent each, Alaska and Hawaii have the largest concentration of consumers who use 50 percent or more of their available credit. (Source: Experian National Score Index Study, February 2007)
  • Residents of Jackson, Miss., use the highest percentage of their credit limit. (Source: Men’s Health magazine’s personal debt survey, July 2008)
  • Lincoln, Neb., residents use the lowest percentage of their credit limit. (Source: Men’s Health magazine’s personal debt survey, July 2008)

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  • Discover
  • US Bank
  • Wells Fargo
  • Chase
  • Barclaycard
  • Bank of America
  • Capital One
  • Citi
  • HSBC
  • (Source: J.D. Power and Associates)

    Bankruptcy/delinquency

    • U.S. credit card 60-day delinquency rate: 4.27 percent. (Source: Fitch Ratings, April 2010)

    Business credit cards

    • Credit cards are now the most common source of financing for America’s small-business owners. (Source: National Small Business Association survey, 2008)
    • 44 percent of small-business owners identified credit cards as a source of financing that their company had used in the previous 12 months – more than any other source of financing, including business earnings. In 1993, only 16 percent of small-businesses owners identified credit cards as a source of funding they had used in the preceding 12 months. (Source: National Small Business Association survey, 2008)