U.S. credit cards – statistics & facts
Seen as a competitive market for credit cards, the U.S. houses some of the world’s most-known brands and has the highest user figures for the payment option.
The number of credit cards in circulation, for example, is roughly three times higher than the debit card count. The market consists of four major players, with market shares of Visa outweighing its competitors for several subsequent years.
Of the banking institutions in the United States that issued credit cards, Citibank and Chase ranked among the largest issuers of credit cards in the country, with over 80 million active accounts each. Will inflation and economic uncertainty in 2022, however, change the payment behavior of Americans?
Credit card debt and inflation
Inflation in 2022 caused a surge in United States credit card balances, despite high-interest rates from lenders. The total credit card debt of 925 billion U.S. dollars in Q3 2022 was a record high and an increase of 38 billion USD – or 4.2 percent -compared to the previous quarter. The delinquency rate of credit card loans at commercial banks returned to a value last seen during the coronavirus pandemic.
The cost of living changed payment behavior for online shopping in the United States in 2022, with four out of 10 respondents using debit cards more often than before. U.S. consumer demand for interest-free BNPL options during holiday shopping was higher than for credit cards, but not by much.
Usage across the country
Credit card debt varied significantly by state. Alaska recorded the highest average credit card debt at over 7,000 U.S. dollars in 2021, as opposed to Wisconsin – with an average debt of nearly 4,600 U.S. dollars. Nevertheless, it became the leading source of debt among consumers across the country in 2022.
Americans are 40 percent likely to use a credit card for an in-store retail purchase. Credit cards are also often used for online purchases, albeit not as much as when shopping offline: 30 percent of consumers are likely to use a credit card then – the same percentage as digital wallets.
Which credit cards are used in the USA?
Best credit cards of 2023
- Citi Premier® Card: Best for good credit.
- Capital One Platinum Credit Card: Best for fair credit.
- Discover it® Secured Credit Card: Best for no credit history.
- Discover it® Student Cash Back: Best for students.
- Capital One Platinum Secured Credit Card: Best for bad credit.
Which is the most luxury credit card?
1. American Express Centurion Card
The American Express Centurion Card is the most exclusive credit card in the world and is commonly known as the “Amex Black Card.” Launched in 1999, American Express has kept it in a shroud of uncertainty, giving it a very high level of status in the minds of consumers.
The Centurion card is so exclusive that American Express won’t release the card’s full details or say how one can become a cardholder. According to reporting by Credit Karma, you need to spend at least several hundred thousand dollars a year on an American Express card and have an income of at least $1 million annually.
Condé Nast Traveler reports that you also have to have specific spending habits, with Amex prioritizing those whose purchases tend toward luxury goods, dining, events, and travel.
Initially, you had to be invited by American Express to get the card. More recently, however, you are allowed to apply if you are already an American Express cardholder. If you are approved, you will need to pay an initial fee of $10,000 and an annual fee of $5,000. The annual percentage rate (APR) for cash advances is the prime rate plus 21.99% and capped at 29.99%. There is also a pay-over-time feature that allows you to carry a balance and pay interest on it.
2. JP Morgan Reserve Card
The JP Morgan Reserve credit card is made of laser-etched palladium and gold (it used to be called the “Palladium Card”) and is available by invitation only, with requirements unstated by Chase. However, according to The Points Guy, to get an invitation you must have at least $10 million in investable assets with JP Morgan’s asset management. Unlike the American Express Centurion Card, the Reserve card has an annual fee of only $595.
The card has liberal perks and rewards. Each dollar that a cardholder spends on travel and dining results in three points toward the card’s reward benefits, and you can qualify for a $300 annual travel credit.
New car purchases are covered for 120 days against damage or theft up to $10,000 per claim, with an annual cap of $50,000. Chase has real-time fraud monitoring and around-the-clock fraud alerts. You get zero liability protection, meaning you won’t be held responsible for any unauthorized charges, and have 24/7 access to a customer service specialist and worldwide travel assistance.
3. Dubai First Royal MasterCard
The Dubai First Royal MasterCard is trimmed in gold, with a diamond embedded in the center of the card. Consumers must receive an invitation from Dubai First to become cardholders.
It comes with some amazing perks. Cardholders have access to a team of 24/7 lifestyle managers whose sole purpose is to meet their every request. Additionally, the card has no credit limit and zero restrictions, allowing cardholders to spend as much as they want.
4. Stratus Rewards Visa Card
The Stratus Rewards Visa Card tries to differentiate itself from other elite cards, even down to its color. The bright white card is available to high-net-worth individuals (HNWIs) only through invitation; however, these individuals can pool their rewards points together to use toward private jets and other perks, an option exclusive to this card.
These other perks include personal concierge services, discounted charter flights, car services, upgrades at luxury hotels, merchandise discounts, and consultations with lifestyle experts. The card has a $1,500 annual fee.
5. Coutts World Silk Card
Queen Elizabeth II used the Coutts World Silk Card, as do at least 100 other people who have $1 million or more in a Coutts account. Known as England’s most exclusive credit card, the Coutts World Silk Card comes with a 24/7 concierge service, access to exclusive airport lounges, and private shopping at designer stores.
