When was the last time you used cash to make a purchase? If you're like most people, it's been a while. The Federal Reserve reported that credit cards are the most common payment method for consumers, and that people prefer using debit or credit cards rather than cash.

However, our reliance on credit cards has made debt even more common. After the national credit card debt surpassed $1 trillion for the first time in 2023, it continued to climb to $1.28 trillion by the end of 2025.

We compiled the latest credit card data and statistics to give you an idea of what's going on in the credit card industry and how you compare to other consumers in how you handle your debt.

Credit card industry

The four main networks facilitating credit card transactions are Mastercard, Visa, Discover, and American Express. Visa and Mastercard are by far the largest networks; cards issued on the Visa or Mastercard networks account for 85% of the U.S. market, with American Express and Discover accounting for most of the remaining 15%.

Credit card issuers are banks, credit unions, and other financial institutions that issue cards in partnership with one of the main networks. There are nearly 4,000 issuers nationwide, but the top 10 represent the majority of the market. In the U.S., JPMorgan Chase was the largest credit card issuer.

Credit card usage

According to the Federal Reserve, 81% of American adults have at least one credit card. However, it's common to have several cards in your wallet. On average, people have 3.7 cards.

The credit utilization rate — the average amount of available credit consumers use — was 29.1% in September 2025.

How people use their cards varies by their credit scores. On average, consumers spend $5,866 per year on their cards, but those with very good to excellent credit tend to spend significantly more per year than other groups.

• Deep subprime: VantageScores below 580

• Subprime: 300 to 600

• Near-prime: 601 to 660

• Prime: 661 to 720

• Prime plus: 721 to 780

• Super prime: 781 to 850

Credit card rates and fees

The credit card industry is immensely profitable; credit card issuers earned over $130 billion in interest and fees in 2022. Since then, the average annual percentage rate (APR) on credit cards that assessed interest has significantly increased.

In 2021, the average APR on general-use credit cards was 16.45%. As of February 2026, it was 21.52%, an increase of over 5%.

Common fees that credit card companies charge include annual fees and late fees.

• Annual fees: Issuers charge annual fees on some cards, particularly those with premium or luxury benefits and for cards designed for consumers with subprime credit. Fees apply whether the consumer uses the card or not, and fees range from $0 to $695 or more per year. According to the Consumer Financial Protection Bureau, the average annual fee was $105.

• Late fees: You may have to pay a late fee if you miss a payment due date. The average late fee is $32.

• Balance transfer: A balance transfer refers to the process of moving the balance from one credit card to another. To complete a balance transfer, you typically pay a percentage of the amount transferred. Balance transfer fees are typically 3% to 5% of the transferred balance.

• Cash advance: Some credit cards allow you to take out cash in a lump sum. To get a cash advance, you have to pay a higher APR and a cash advance fee; cash advance fees are usually 5% of the advance amount.

Credit card balances by age and income

As people increasingly use credit cards as their primary payment method, consumers are accruing larger balances, and 53% carry a balance rather than paying it off in full each month. As of 2025, the average credit card balance was more than $6,000.

Credit card balances vary by age. Generation X — those between the ages of 44 and 59 — had the highest average balance at $9,684. By contrast, Generation Z and the Silent Generation — the youngest and oldest cohorts, respectively — had the lowest average balances, at less than $4,000 each.

With higher credit card balances, it's no surprise that credit card payments are more expensive. The average credit card payment was $181 in Q1 of 2025, up from $179 of Q1 of 2024.

Credit card delinquency

With credit cards, consumers are required to make a minimum payment each month by the statement due date. In general, this falls between 2% and 4% of the current balance.

Credit card delinquency rates have increased. At the end of 2024, approximately 7.2% of credit card balances became delinquent, incurring late fees and negative reports to the major credit bureaus.

Credit card rewards

One of the biggest draws of credit cards is the ability to earn rewards. With some rewards cards, you can earn airline miles, points, or cash back on select purchases. You can redeem those rewards in a variety of ways, including flights, hotel reservations, merchandise, gift cards, or even statement credits.

The Consumer Financial Protection Bureau reported that consumers earned $47.5 billion in rewards in 2024 — an increase of 81% from the $26.1 billion earned in 2019.

Typical reward rates have also increased. Consumers earned an average of 1.6 cents per dollar in 2023, up from 1.4 cents per dollar in 2020.

Sources

• https://www.frbservices.org/binaries/content/assets/crsocms/news/research/2025-diary-of-consumer-payment-choice.pdf

• https://www.newyorkfed.org/microeconomics/hhdc.html

• https://files.consumerfinance.gov/f/documents/cfpb_consumer-credit-card-market-report_2023.pdf

• https://finance.yahoo.com/news/jp-morgan-tops-nilson-report-151000698.html

• https://www.experian.com/blogs/ask-experian/average-number-of-credit-cards-a-person-has/

• https://www.experian.com/blogs/ask-experian/consumer-credit-review/

• https://files.consumerfinance.gov/f/documents/cfpb_consumer-credit-card-market-report_2025.pdf

• https://www.transunion.com/content/dam/transunion/global/business/documents/fs2024/summit/credit-builder-products.pdf

• https://fredblog.stlouisfed.org/2023/12/three-measures-of-us-credit-card-debt/

• https://www.federalreserve.gov/releases/g19/current/

• https://www.experian.com/blogs/ask-experian/what-is-a-balance-transfer-fee/

• https://www.experian.com/blogs/ask-experian/what-is-a-cash-advance/

• https://www.jdpower.com/business/press-releases/2025-us-credit-card-satisfaction-study

• https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/

• https://www.experian.com/blogs/ask-experian/research/average-monthly-loan-payment/

• https://www.experian.com/blogs/ask-experian/how-is-your-credit-card-minimum-payment-calculated/

• https://www.newyorkfed.org/newsevents/news/research/2025/20250213

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