Holiday sales are on track to grow as much as 11.5% over 2020, according to a projection by the National Retail Federation. About 30% of Americans said they overspent during the gift-giving season, according to a post-holiday survey by WalletHub. Although omicron drove a new wave of infections, 56%, said Covid did not affect their plans. For most shoppers, increasing their spending also meant relying more on credit cards or buy now, pay later financing to spread out their expenses. As a result, roughly 36% of consumers went into debt, owing an average of $1,249, according to a survey by LendingTree. [CNBC]
More than a third of consumers between the age 18-54 own cryptocurrency according to a recent study by Cantaloupe, with people ages 18-34 most likely to own it (37%), and individuals 35-54 (33%) trailing only slightly. Further, 67% of those who own crypto are willing to consider using it for purchases if it were linked to a mobile wallet, with an additional 19% saying they would consider using crypto linked to a mobile wallet if it were easy.
User Experience Reigns in Credit Card Decisions
A super-low interest rate might seem like the most tantalizing perk to dangle in front of would-be credit card holders, but research shows there are myriad other factors consumers take into consideration when deciding whether to use one card over another. According to new research, user experience benefits like cash-back rewards, data privacy and credit building tools are considered by 75% of consumers. The research indicated that 70% of those seeking a card considered data security a top priority, and 75% of active users that are also parents look for credit-building tools when considering a card.
The Data Around U.S. Credit Card Line Utilization
U.S. credit card lines, the amount that issuers underwrite for each open account, are at a historic high. In the latest numbers published by the Federal Reserve, total credit lines amount to $3.9 trillion. However, only 27% of these credit lines are in use, and $3 trillion is available in open credit. Note that line utilization is on the downswing, based on a 20.3% utilization rate. In contrast, the utilization rate in 2009 was 27.7% after credit card issuers began to contract credit lines during the Great Recession.[Readmore…]
