CFPB Releases Seventh Biennial Review of the U.S. Credit Card Market 

Key Findings 

• Overall credit card spending continued to expand, driven primarily by higher-credit-score consumers. Total purchase volume reached approximately $3.6 trillion in 2024, an increase from $3.2 trillion in 2022. Spending growth of about 5 percent occurred almost entirely among cardholders with prime-plus or higher credit scores. Purchase activity among consumers with prime or lower scores has remained largely unchanged since late 2023, even as the number of those cardholders increased. 

• Outstanding balances climbed above prior benchmarks, though growth moderated. Aggregate credit card balances surpassed $1.2 trillion in 2024. Average balances per cardholder rose above pre-pandemic levels in both 2023 and 2024, reaching roughly $5,300 per month. Cardholders with prime credit scores carried significantly higher average balances, at approximately $8,700. Balance growth slowed to around 6 percent by the end of 2024, down from much higher rates seen in early 2022. 

• Interest rates increased to the highest levels observed in nearly a decade. The average APR for general-purpose credit cards rose to 25.2 percent in 2024, while private-label cards averaged 31.3 percent. These increases were largely tied to movements in the prime rate. New general-purpose accounts opened in 2024 carried an average APR of 27.5 percent, compared with 19.8 percent for comparable accounts ten years earlier. 

• A growing share of cardholders relied on minimum-only payments. In 2024, roughly 15 percent of general-purpose cardholders paid only the required minimum, an increase from the prior review period. For private-label cards, the share rose to 20 percent. The increase was most pronounced among consumers with subprime, near-prime, and prime credit scores. 

• Consumer borrowing costs rose substantially. Interest charges totaled $160 billion in 2024, up significantly from $105 billion in 2022. Higher interest rates, an expanding cardholder base, and rising average balances all contributed to the increase. By the end of 2024, about half of all accounts carried revolving balances, consistent with pre-pandemic norms. Consumers also paid $31.3 billion in credit card fees, representing a 23 percent increase over 2022. 

• Cash back products became the dominant general-purpose credit card offering. Over the past decade, cash back cards grew from a minority share to more than one-third of all general-purpose accounts. Cards offering points or miles saw modest growth, while no-reward cards declined. Cash back cards are most often issued to consumers with stronger credit profiles and typically feature low or no annual fees and introductory zero-percent APR offers. 

• Promotional APR products accounted for a sizable portion of activity. Credit cards with zero-percent introductory interest rates represented roughly $899 billion in purchase volume and $352 billion in outstanding balances by the end of 2024. Approximately one-third of total credit card spending and balances occurred on cards with promotional rates, which temporarily lower borrowing costs but tend to be associated with higher balances over time. 

• Delinquency and charge-off rates peaked before declining later in the year. Credit card performance deteriorated in early 2024, with delinquencies and charge-offs reaching elevated levels, but conditions improved as the year progressed. By year-end, delinquency rates fell back to pre-pandemic levels, measuring about 3.0 percent for general-purpose cards and 3.8 percent for private-label cards. 

• Issuer market share varied significantly by consumer credit tier. Issuers with assets under $100 billion held a majority of balances associated with below-prime consumers, while the vast majority of superprime balances were concentrated among larger institutions. Large issuers have competed for higher-credit-score consumers through enhanced rewards and benefits, while other issuers have focused on extending credit to lower-score consumers through specialized pricing, underwriting, and risk management approaches. 

• Disputed transactions remained a notable feature of card usage. Cardholders challenged approximately $9.8 billion in charges during 2024, leading to $5.9 billion in chargebacks. Among general-purpose cards, cancelled recurring charges—such as subscriptions and membership fees—were the most common source of disputes. 

• Emerging technologies are reshaping competition and risk. Advances in artificial intelligence and the use of alternative data sources are influencing how credit cards are marketed, underwritten, and managed. These tools have expanded access for consumers with limited credit history and supported new consumer-facing debt management applications. At the same time, they have contributed to increased fraud risks. New payment alternatives, including stablecoins and pay-by-bank options, are also developing and may affect the structure of the credit card market over time.