The vast majority of Americans have a credit card—and many have more than one. But you might be surprised by just how many cards people have, what types of cards they prefer and how they tend to use their cards. Let's take a look.
1. People Have an Average of 3.9 Credit Cards
According to the latest Experian data, the average number of credit cards per person has slowly declined from 4.15 in 2017 to 3.9 in 2023. However, national averages only tell part of the story.
For example, Gen Z has the fewest number of credit cards—an average of two per person—while Gen X and Baby Boomers have an average of 4.3.
Millennials and the Silent Generation fall in the middle, with an average of 3.5 per person.
Having multiple credit cards can be helpful if the cards have different features, or if you want to separate purchases on different cards. Opening a new credit card might temporarily hurt your credit scores a little, but consumers' scores tend to improve and go even higher over time if they manage their cards well.
READ MORE: 42 Important Credit Card Terms You Need to Know
2. The Average Credit Limit Is Nearly $30K
Experian data from 2023 also reveals that the average credit card limit was $29,855—a 6.8% increase from the previous year. As with other stats, averages can vary by generation. For example, Gen Z cardholders had an average credit limit of $12,899, while Gen X and Baby Boomers had averages over $38,000.
Your credit card limit determines how high your balance can go before a card issuer starts declining new transactions. But a high limit can be important even if you don't use your credit card that much.
Your credit utilization rate is an important factor in your credit score, and it compares the card's balance and credit limit as they appear in your credit report. A lower utilization rate is best, and that's easier to maintain with high credit card limits.
3. 71% of People Have Rewards Credit Cards
A 2024 Ipsos poll found that 71% of people have at least one credit card that gives them rewards or points.
Sixty-eight percent of those cardholders prefer using their credit card because of the rewards they earn, and most people don't feel like they spend more money with a credit card than with a debit card or cash.
Earning rewards for purchases you were going to make anyway can be a nice perk that opens up new possibilities. Of the people who have a rewards card, 15% use their rewards to pay for products or experiences they wouldn't be able to afford otherwise.
READ MORE: Are You Losing Out on Your Credit Card Rewards?
4. Nearly Half Enjoy the Convenience and Want To Build Credit
In the 2024 Ipsos poll, the surveyed people were also asked how and why they use their credit cards—and they could choose more than one answer. Forty-five percent say they use their credit card for its convenience. Credit cards can be handy when you're shopping online or if you don't want to carry cash. You can even use a digital wallet to pay with a credit card using a mobile device.
Forty-four percent use their card to build and improve their credit scores. If you also want to improve your credit, make sure you make payments on time—setting up automatic payments can help. Additionally, try to only use a small percentage of your card's credit limit at any time.
READ MORE: 10 Steps to Improve Your Credit Now
5. About a Quarter Use Credit Cards To Help Them Budget
One in four people surveyed use their credit card to help them manage their monthly budget.
Your credit card purchases usually won't accrue interest if you pay your bill in full each month, which most people (53%) do. And because of how credit cards work, you could have about seven weeks between when you make a purchase and a credit card bill's due date.
The timing might help you align purchases with your payday or give you a chance to save up and pay off a credit card bill without paying interest. Some credit card issuers also have spending and budgeting tools in their online accounts or apps.
6. 50% of People Prefer Cash Back Rewards
A Bankrate survey from November 2024 found that 50% of people list cash back rewards as the best feature of the rewards card they use most often. Only 9% of people listed points or miles.
Cash back rewards can be convenient and easy to use. With points and miles, the value can vary depending on the program and redemption option. Loyalty programs can even reduce the value of their rewards at any time. But with a cash back credit card, you'll know exactly how much your rewards are worth.
7. 23% of Rewards Cardholders Didn't Redeem Rewards Last Year
The Bankrate survey also asked cardholders about their rewards redemptions, and 23% said they didn't redeem any rewards in the last year. The plurality (39%) redeemed rewards for less than $300 in cash back or gift cards.
Stocking up on rewards isn't necessarily bad, especially if you're saving up for a special redemption or event. However, you have to be careful about accumulating miles or points that might expire or be worth less in the future.
If you're holding on to rewards because you're not sure how the program works, look for explanations on the issuer's website or a rewards blog. Or consider switching to a cash back card that's easier to manage.
READ MORE: Different Types of Credit and How They Work
Looking for Your Next Credit Card?
If you're looking to add a rewards credit card to your wallet, Synchrony's Premier World Mastercard may be a good option. Earning 2% cash back on every purchase every month, applied as a statement credit, allows you to focus on the fun parts of life! Learn more today and determine if the Synchrony Premier World Mastercard is the right choice for you.
