Build your business strategy from the ground up with this credit card market report. Focusing on the US market, you’ll get a review of industry performance. To provide deeper insight into the decisions and behaviors of credit card owners, this report then provides data-backed analysis based on real consumer responses. Grow your insight strategy today and proceed with confidence.
US Credit Cards Market – Current Landscape
Despite rising concern surrounding credit card debt and the stress that it causes, a surprising 45% of cardholders are willing to pay higher annual fees for superior rewards and benefits, highlighting a shift towards premium offerings. Concurrent with this demand for enhanced benefits is a focus on credit building, solidifying the notion that expansion of the credit card market is occurring at the extremes.
As the industry stabilizes following a two-year period of extreme growth, issuers must contend with rising delinquency rates that pose a significant threat. Gen Z and Black consumers that were powering the expansion of the card market had severely reduced acquisition rates this year, demonstrating the uneven effects of credit tightening.
This landscape presents a dual opportunity: capitalizing on consumer interest in high-value credit products while addressing the challenges of maintaining financial health amid increasing delinquencies. As credit cards shift from a purely physical product to a multifaceted experience that is highly digital, issuers must ensure that their digital platforms keep cardholders engaged and invested in their rewards ecosystems.
US Credit Cards – Market Statistics
- US credit card market size: With a surge in growth between 2022-2023, growth of the number of credit card accounts has dropped back to 3.6% year-over-year in 2024, aligning closer to typical levels.
- US credit card market insight: Two-thirds of credit card owners earn cash rewards on one of their primary cards, proving to be the standard of reward. However, points cards are closing the gap with younger cardholders. Nearly 50% of Gen Z and Millennials earn points-based rewards, opting due to their preference for flexible redemption.
- US credit card market analysis: With younger consumers showing a preference for reward points, this shift provides issuers with the opportunity to demonstrate the cash value that redeeming points can provide. Offering higher redemption value through travel portals, issuers can entice cardholders to prioritize earning reward points rather than earning differently across credit card products.
US Credit Cards Market Report – What’s Inside?
Key Topics Analyzed in the Report
- Rewards earned on credit cards
- Most common rewards redemptions
- Reasons not to own a credit card
- Timing of most recent credit card acquisition
- Motivations behind most recent credit card acquisition
Report Scope
This Report examines consumer attitudes and behaviors concerning credit cards, including credit card ownership rates, rewards style and redemption preferences, and motivations behind signing up for a new credit card.
Meet the Expert Behind the Analysis
This report was written by Patrick Rahlfs. Patrick joined Mintel in 2018 and has extensive experience as a custom research analyst focused on the financial services industry, specializing in presenting data trends within the credit card and banking sectors. He specializes in creating insights at the intersection of consumer behaviors and the financial services competitive landscape.
Credit card acquisition is decelerating as delinquencies grow, shifting focus to the extremes of the credit spectrum.
Patrick Rahlfs
Principal Analyst – Financial Services
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Executive Summary
- What you need to know
- Gen Z card acquisition is rapidly decelerating
- Graph 1: timing of most recent credit card opening, by generation and year, 2022-24
- Credit score considerations are the top motivation for new card sign-ups
- Graph 2: credit card sign-up motivations, 2024
- Consumer openness to annual fees continues to grow
- Graph 3: attitudes toward annual fees, by year, 2022-24
- Market predictions
- Opportunities
- Monthly fees combine urge for luxury with approachable structure
- Co-branded cards can improve everyday rewards for engaged cardholders
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Market Dynamics
- Market context
- Market size and drivers
- Credit card account growth is strong, but decelerating
- Graph 4: number of credit card accounts, by year, 2016-24
- Card balances remain elevated
- Graph 5: Y/Y change in credit card debt balance, 2016-24
- Delinquency rates reach new highs
- Graph 6: credit card delinquencies, 2016-24
- Disposable income rises, but remains tight
- Graph 7: change in Disposable Personal Income, 2022-24
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Consumer Insights
- Consumer fast facts
- Rewards Earn
- Cash rewards are the standard
- Graph 8: rewards earn from primary credit cards, 2024
- Men gravitate toward co-branded rewards, while women prefer cash/points
- Graph 9: credit card rewards earn, by gender, 2024
- Flexible points have additional appeal to younger cardholders
- Graph 10: credit card rewards earn, by generation, 2024
- Millennials look for travel rewards through co-branded cards
- Graph 11: co-branded credit card rewards earn, by generation, 2024
- Financially healthy consumers often graduate beyond cash rewards
- Graph 12: credit card rewards earn, by financial situation, 2024
- Rewards redemption
- Cash redemption is most common
- Graph 13: credit card rewards redemption, 2024
- Younger cardholders seek a variety of redemption options
- Graph 14: credit card rewards redemption, by generation, 2024
- Rewards points succeed in flexible redemption, but cash still reigns supreme
- Graph 15: credit card rewards redemption, by credit card rewards earn, 2024
- Airline rewards are most often converted to travel redemption
- Graph 16: credit card rewards redemption, by co-brand rewards earn, 2024
- Black cardholders are top users of gift card redemption
- Graph 17: credit card rewards redemption, by race, 2024
- Struggling consumers often lack rewards cards
- Graph 18: lack of credit card redemption, by financial situation, 2024
- Reasons not to have a credit card
- Comfort with debit is a stronger barrier than aversion to debt
- Graph 19: reasons not to own a credit card, 2024
- Rising prices have caused more consumers to find use cases for credit cards
- Graph 20: reasons not to own a credit card, by year, 2023-24
- Women are more likely to struggle with credit card qualification
- Graph 21: reasons not to own a credit card, by gender, 2024
- Consumers become more open to debt in their mid-to-late 20s
- Graph 22: reasons not to own a credit card, by age, 2024
- Hispanic consumers trust issuers, but may struggle with qualification
- Graph 23: reasons not to own a credit card, by race, 2024
- Timing of most recent credit card
- About one in three cardholders opened a new card in the past year
- Graph 24: timing of most recent credit card opening, 2024
- Credit card openings are decelerating
- Graph 25: timing of most recent credit card opening, by year, 2021-24
- Gen Z credit card acquisition slipped below Millennials
- Graph 26: credit card opening in the past year, by generation and year, 2022-24
- Black consumers severely decelerated card acquisition
- Graph 27: opened a credit card in the past year, by race and year, 2022-24
- Card acquisition is occurring at the extremes
- New credit card motivations
- Credit building is the most common #1 motivation
- Graph 28: credit card sign-up motivations, 2024
- Credit building is far and away the top motivation for female cardholders
- Graph 29: #1 ranked new credit card motivation, by gender, 2024
- Young cardholders seek bonuses and benefits…
- Graph 30: top-three ranked credit card acquisition motivation, by age, 2024
- …while 35-44 year-olds seek to manage balances
- Graph 31: top-three ranked credit card acquisition motivation, by age, 2024
- Interest rate shopping peaks in $75K – $100K income segment
- Graph 32: top-three ranked credit card acquisition motivation, by household income, 2024
- Asian cardholders are highly motivated by rewards and bonuses
- Graph 33: top-three ranked credit card acquisition motivation, by race, 2024
- Co-branded credit cards
- Co-branded cards are often complementary products
- Graph 34: branded vs co-branded card ownership, 2024
- Co-branded cardholders often use their co-brand cards for general purchases
- Graph 35: attitudes toward co-branded credit cards, 2024
- Millennials have the highest preference toward co-branded rewards
- Graph 36: attitudes toward co-branded credit cards, by generation, 2024
- Young co-branded cardholders are often converted in-person
- Graph 37: in-person application for co-branded card, by age, 2024
- Hotel cards are the most popular for everyday purchases
- Graph 38: co-branded card behaviors, by co-branded rewards earn, 2024
- Elevated loyalty status is often tied in with travel co-branded cards
- Graph 39: elevated loyalty status through co-branded card, by co-branded rewards earn, 2024
- Attitudes toward credit cards
- Inflation has not dampened enthusiasm for premium cards
- Graph 40: attitudes toward annual fees, by year, 2022-24
- Premium card ownership shifts further toward Gen Z & Millennials
- Graph 41: consumers who pay an annual fee for at least one of their credit cards, by generation and year, 2023-24
- Waning inflation rates have yet to ease credit card stress
- Graph 42: attitudes toward credit card debt, by year, 2023-24
- Younger generations’ card experience is digital first
- Graph 43: usage of mobile apps and wallets, by generation, 2024
- Despite digital card usage, card appearance is increasingly crucial
- Graph 44: importance of physical card appearance, by year, 2022-24
- Despite digital card usage, card appearance is increasingly crucial
- Young consumers are immediately willing to explore new issuers
- Graph 45: card ownership outside of primary bank, by generation, 2024
- Card consolidation is a common preference
- Graph 46: consumers who would prefer to own fewer credit cards, by number of credit cards regularly used, 2024
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Innovation and Marketing strategies
- Launch activity and innovation
- Wells Fargo Attune promotes new rewards categories centered on wellness
- American Express touts limited time card art for its Gold refresh
- US Bank announces a supercharged cash back card
- Marketing and advertising
- Non-rewards offers are more competitive than ever
- Graph 47: non-rewards average offer score and subscores, 2023-24
- American Express Platinum television ads showcase lifestyle benefits
- Chime ties credit score to life goals
- Luxury Gold Card showcases 24K gold composition
- Annual fee cards are capturing a larger portion of mail volume
- Graph 48: percentage of credit card mail volume, by annual fee, 2022-24
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Appendix
- Market definition
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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