How Many Americans Have Credit Cards in 2023?

How many Americans have credit cards in 2023?

Let’s find out.

The United States has one of the highest credit card penetration rates globally.

The country is also home to a Tap to Pay system which makes purchasing easier for consumers. 

Aside from making in-store purchases, Americans use credit cards for a good number of activities be it paying bills, funding medical expenses emergencies, or simply building their credit scores.

Moreover, carrying a stash of cash is considered ancient–a metal card can do more than what a dollar bill can do anyway.

How Many Americans Have Credit Cards in 2023?

To answer the question “how many Americans have credit cards in 2023?”, the latest data from Yahoo! shows 191 million people in the United States have at least one credit card. 

This number is a significant increase from the 2020 figures.

By the end of the pandemic year, 183 million American adults, or 72.50% hold this type of card.

Average Americans Have Four Credit Cards

Alternatively, an average American sports four (4) credit cards, with each serving them different purposes. 

Bills and other expenses can be great sources of worry. This is exactly why most people turn out to credit cards to avoid getting themselves from getting overextended for monthly dues.

Out of the $8 trillion worth of electronic payments created in the country in 2020, 48.51% had been completed through credit cards.

Another underlying reason is having rewards. Today, cashback and rewards credit cards can score someone a nice overnight stay at a five-star hotel.

Compared to a small APR consumers have to pay for using credit cards every year, such a prize is already an enticing bargain.

Top US States With Highest Credit Card per Citizen Ratio

Citizens in some US states hold more credit cards than others. Surveys show New Jersey has the highest credit card per citizen ratio at 4.1/member of the population. 

Who else made the list? Have a glimpse of this data derived from CNBC.

1. New Jersey – citizens carry an average of 4.1 credit cards per person
2. Connecticut – citizens carry an average of 3.8 credit cards per person
3. New York – citizens carry an average of 3.8 credit cards per person
4. Delaware – citizens carry an average of 3.7 credit cards per person
5. Florida – citizens carry an average of 3.7 credit cards per person
6. Rhode Island – citizens carry an average of 3.7 credit cards per person
7. Maryland – citizens carry an average of 3.6 credit cards per person
8. Texas – citizens carry an average of 3.6 credit cards per person
9. California – citizens carry an average of 3.6 credit cards per person
10. Ilinois – citizens carry an average of 3.6 credit cards per person

80% of American Adults Have At Least One Credit Card Today

The number of credit cards carried by members of each age group varies significantly.

This comes as those who are active members of the workforce are more likely to get bank approval compared to their younger counterparts.

Today, only 20% of American adults do not have credit cards or any type of store card, leaving the remaining 80% with one.

Here is the average number of credit cards held by each generational group in the United States:

• Baby boomers – members hold at least 3.4 credit cards per person
• Generation X – members hold at least 3.3 credit cards per person
• Generation Y – members hold at least 2.7 credit cards per person
• Generation Z – members hold at least 1.7 credit cards per person

New Credit Card Account Opening is on the Rise

In February 2022, nearly 12 million Americans received approval for their new bank credit card applications.

Such a number represents a 31.4% year-on-year increase, with inflation continuing to take hold of the US economy.

US Credit Card Market by Network

Visa is the biggest credit card network in the United States, with 48.71% of American adults having a card issued by the brand.

Take a look at this data of the biggest credit card networks in the United States and how many American adults carry each in their wallets.

• Visa – 48.71% of American adults have a Visa-issued credit card in 2020
• Store Credit Card – 43.40% of American adults have store-specific credit cards in 2020
• Mastercard – 38.82% of American adults have a Mastercard-issued credit card in 2020
• Discover – 17.88% of American adults have a Discover-issued credit card in 2020
• American Express – 14.98% of American adults have an Amex-issued credit card in 2020

Number of Credit Cards in Circulation by Network (2020)

Below is the information detailing the number of credit cards in circulation from the biggest issuers in the United States.

• Visa – there were 342 million Visa credit cards in circulation in 2020
• Store Credit Card – there were 337 million store-specific credit cards in circulation in 2020
• Mastercard – there were 245 million Mastercard credit cards in circulation in 2020
• Discover – there were 60 million Discover credit cards in circulation in 2020
• American Express – there were 54 million American Express credit cards in circulation in 2020

Why do Americans Use Credit Cards?

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Americans use credit cards for diverse reasons. Aside from convenience, these tiny metal gadgets come with heaps of good things with them.

What are the common reasons why Americans pick up credit cards? Find out below.

• Paying monthly bills – 62.14% of people in the United States say they use credit cards to automate the charging of monthly expenses
• Paying for travel – 52.92% of Americans use their credit cards to fund travel expenses
• Covering medical expenses – 36.57% say they use credit cards to pay for medical expenses
• Covering payments for another credit card – 15.26% of Americans say they use a credit card to pay for their outstanding bills on another card
• Monthly car payment – 11.69% of Americans pay their car loans through credit cards
• Mortgage payment – 10.21% settle their monthly house amortizations using credit cards

Conclusion

The United States has a big credit card culture, with nearly 200 million American adults having at least one credit card in their possession.

Visa currently heads the credit card market, issuing 342 million credit cards in 2020. 

Americans use these metal access passes for making in-store payments, covering expenses, soliciting rewards, and building on their credit scores.

Undoubtedly, credit cards are convenient to have, but only if we know how to use them with caution.

Thanks for reading our article on how many Americans have credit cards in 2023.

Sources