Credit Card Statistics - When Good Credit Cards Go Bad
According to credit industry statistics, there were 1.3 billion (yes, billion) credit cards in circulation in the United States in 2004. That’s an average of 4.3 credit cards per person. With those credit cards people have racked up more than $2.2 trillion in purchases and cash advances on in just this last year.
For Americans it has become a habit to spend money that they just don’t have. This problem is made worse by the fact that fewer cardholders are paying their credit cards bills on time. The percentage of people delinquent on their credit cards is the highest it’s been in three years and that statistic shows no sigh of stopping.
A 2004 statistic shows that 39% of Americans, on average, pay their cards off in full each month, which is a great strategy to avoid accruing interest. But this also means that the remainder of the population, roughly 60%, is carrying a credit card balance.
Another interesting statistic is that the average American has access to approximately $19,000 across all credit cards combine. From that stat its easy to see why credit card debt overall has grown by 315 percent from 1989 to 2006.
For those in trouble with credit card debt, there is no time like the present to grab the bull by the horns and get their debt under control once and for all. For starters, make a list of your debts and prioritize your payments. Interest rates can range from 10 to 18 percent, on average. Tackle your highest-interest credit card first. Try shifting high-interest credit card debt onto cards that have lower interest rates, in most cases this will alleviate some pressure on your wallet.
Always keep in mind that if you’ve been a good customer, have paid your invoices on time and have good credit, you can negotiate for a higher credit limit or, better yet, knock some points off your interest rate. Not may people know you can just ask for a better rate. If they decline, threaten to cancel the card, they’ll usually give in, and if they don’t, call their bluff; there are plenty more credit card companies out there that will appreciate your business.
If you’d like to see more credit card statistics, visit CardRatings.com. And if you’d like more tips and information about getting out from under credit card debt, read When Credit Cards Put you in Jeopardy on CNN.com.
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I read your statistics regarding that 39% of Americans pay their balance at end of the month.
Can you tell me how many transactions and how many $’s is represented by that group. I am working on a paper that advices spanish speaking people to pay their Credit Cards in full each Month.
Thanks for your help
Saul Berenthal
Like with most things in life moderation is the key. Some of these financial tools if used correctly can be very effective and help keep you out of debt or raise you rating. Become informed on each and every financial step you take. Make sure you try and get the lowest possible rate. If your rate is high, ask for it to be lowered, or let them know you have other offers available to you. Good Luck