New Upgraded Points Survey Exposes How Reliant Americans Are on Their Credit Cards

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Jan 23, 2024, 08:34 ET

MANCHESTER, N.H., Jan. 23, 2024 /PRNewswire/ -- The average American puts 48% of their purchases on a credit card. Due to rising inflation and increased prices, a new survey by Upgraded Points is revealing how often Americans are using their credit cards and the types of purchases people are making on them.

The Average Current Credit Card Balance in Every U.S. State

Mapping Each State's Credit Card Reliance

"It's shocking to discover just how reliant we have become on credit cards as a nation," said Keri Stooksbury, editor-in-chief at Upgraded Points. "Due to the rising cost of living, everyone, from baby boomers to Gen Z, is being affected, with over 50% of credit card purchases being essential expenses like food, gas, medical, and utility bills."

Key Takeaways:

53% of American credit card purchases are essential items like groceries, gas, and medical bills.
Nearly 3 in 4 Americans depend on credit cards to cover emergency expenses.
22% of Americans hit their credit card limit at least once per year – 42% have requested an increase in their credit card limit from their issuer at least once.
3 in 10 Americans say it's been 2+ years since they didn't have a credit card balance.
46% of credit card users are not paying their balances in full at the end of each statement period with one-third of Americans (33%) paying $100 or more in credit card interest every month alone.

Study Methodology

Diving into our nation's spending habits, Upgraded Points surveyed over 5,000 U.S. credit cardholders asking Americans about their reliance on credit cards, balances, requests for increased limits by issuers, what is being purchased, and more.

Credit Card Balances by State

The top 5 states with the highest credit card balances:

New Hampshire – $4,485
Maine – $4,435
Wisconsin – $4,347
Alabama – $4,231
Connecticut – $4,201

The top 5 states with the lowest credit card balances:

Hawaii – $1,502
Washington – $1,729
West Virginia – $1,763
Tennessee – $2,044
Mississippi – $2,217

Surprisingly, there is no rhyme or reason based on the cost of living. Hawaii, which has been known for having a very high cost of living, scored the lowest in terms of debt, yet also came in at number 1 for being the most reliant on credit cards at 64.3%, versus Kentucky at just 35.3%.

To read more about this survey and the state-by-state breakdown, visit the complete study.

About Upgraded Points

Headquartered in Austin, Texas, Upgraded Points is a travel company that helps to demystify the complex world of travel and credit cards. Launched in 2016 by Alex Miller, Upgraded Points uses targeted research efforts and in-depth studies to help travelers maximize their travel, points, and experiences. Learn more at: www.UpgradedPoints.com.

Contact:
Alex Miller, Founder
1-214-646-8866
[email protected]

SOURCE Upgraded Points LLC