Credit card balances have climbed sharply as consumers navigate changing economic conditions, rising costs, and evolving borrowing needs. After declining during the pandemic, total U.S. credit card balances rebounded from $0.80 trillion in the third quarter of 2021 to $0.93 trillion in the third quarter of 2022—the highest level recorded during the five-year period.
The shift has important implications for both consumers and credit card issuers. As balances rise, issuers must closely monitor credit risk, portfolio performance, and profitability, particularly amid an uncertain economic environment. Understanding the forces driving credit card balances can help financial institutions prepare their portfolios for changing consumer behavior and potential economic headwinds.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report:The Credit Card Data Book Part Two: Internal Dynamics
Credit Card Balances Past Five Years (in $trillions)
- Q3 2018 – $0.84
- Q3 2019 – $0.88
- Q3 2020 – $0.81
- Q3 2021 – $0.80
- Q3 2022 – $0.93
About Report
This report is the second part of a two-part annual series called the Credit Card Databook. The report explores profitability, credit risk, and portfolio dynamics to understand the market for issuers and the challenges they may face in 2023. The goal is to provide recommendations to help financial organizations strategize for the current and upcoming credit card market in the United States. Unfavorable economic conditions loom, and issuers must prepare themselves to weather the storm.
