Credit card statistics and trends UK

If used correctly, credit cards can help you to spread out expenses month by month, earn rewards on day-to-day spending and improve your credit score. However, some people are reluctant to use their cards for fear of getting into debt. We’ve collated the latest statistics on credit card ownership and spending in the UK.

UK credit card statistics: Highlights

• 58.1 million credit cards were in circulation as of August 2023.
• More than two-thirds of UK adults (68%) have a credit card as of November 2023, around 36.2 million people.
• The average transaction value on a credit card is £54.50.
• The average credit card debt per person is £1,264 as of August 2023, up 18% from August 2021.
• Approximately 11.6 million credit card transactions happen per day in 2023.
• The average monthly spend per UK credit card was £354 in August 2023.
• UK residents spent £20.6 billion on credit cards in August 2023.
• On average, people in the UK have 1.7 credit cards.
• Around a quarter of Brits (26%) have 3 to 4 credit cards.
• There are 53 million active credit card accounts as of August 2023, but only 36 million active accounts.

What is the size of the UK credit card market?

As of August 2023, there are an estimated 58.1 million credit cards in the UK, down from 62.8 million in 2021. Over the last year, the number of credit cards in the UK has fluctuated slightly, remaining around the 59 million mark.

People spent £20.6 billion on UK credit cards in August 2023, up from a total spend of just under £17 billion in August 2021.

• Chart
• Table

How many people have a credit card in the UK?

An estimated 36.2 million people, or 68% of UK adults, have at least one credit card in 2023, according to our recent survey. On average, UK residents have around 1.7 credit cards per person.

What is the average credit card debt in the UK?

The average credit card debt per person is £1,264 as of August 2023, an 18% increase from August 2021. The average credit card debt per household is £2,394 as of August 2023. Outstanding credit card debt in the UK came to £67.3 billion as of August 2023.

How many card transactions happen per day in the UK?

Approximately 11.6 million credit card transactions happen on UK cards per day, including UK holders and overseas. The number of credit card transactions varies month-on-month and, this year, peaked in June 2023, with over 12.2 million credit card transactions.

• Chart
• Table

What is the average credit card spend per month?

The average monthly spend for a credit card was £354 in August 2023. This is based on £20.6 billion total expenditure over approximately 58.1 million credit cards. This has increased by 24% from August 2021, when the average monthly spend on a credit card was £286.

What is the average credit card purchase value?

The average credit card purchase value is estimated to be £54.50, as of August 2023. Not all credit card expenditure comes from purchases, with some expenditure on cash advances and balance transfers. Since the start of 2021, the average credit card purchase value has increased from just over the £50 mark.

• Chart
• Table

How many credit cards does the average person have?

On average, people in the UK have 1.7 credit cards. However, the numbers vary drastically from person to person. According to external research, more than a quarter of Brits (26%) have 3 to 4 cards. Some Brits won’t have a credit card at all!

Credit card usage by age

According to our 2023 survey, 25-34 year-olds are most likely to have a credit card, with three-quarters (75%) of this age group owning one. They are closely followed by 18-24 year-olds, where 74% own a credit card.

Interestingly, those who are aged 45-54 are least likely to have a credit card, as less than two-thirds of this age group (63%) own one.

Those who are younger tend to have a less developed credit history, so more young people may be acquiring credit cards so that they can build their credit score.

Credit card usage by gender

Men are more likely to have a credit card than women, with around 7 in 10 men (71%) owning one compared to 65% of women. Almost half of the men in the UK (48%) will also be using their credit card for Christmas-related purchases in 2023, compared to 4 in 10 women (39%).

• 2022 credit card statistics

  Quick overview

  • As of January 2022, 59.9 million credit cards were issued to UK residents, this is 4.8 million less than in January 2020 (64.7 million).
  • There were 292 million credit card transactions in January 2022. This is a 48% increase from January 2021.
  • Between 2021 and 2022, contactless payments increased by 80 million.
  • One-fifth (21%) of consumers prefer to use credit cards for expensive items (£100+).
  • The average value of purchases made using a credit card decreased by 9.8% (£6) between January 2020 (£61) and January 2022 (£55).
  • As of February 2022 the average interest rate for credit cards was 18.3%.

  Number of credit card accounts

  In January 2022, there were 59.9 million credit cards issued to UK residents, an increase of 4.6 million from the previous year. However, between January 2020 to January 2022, there has been a decline of 4.8 million (7.4%) in credit cards issued in the UK.

  This is considerably less than the 96.8 million debit cards issued to UK residents in January 2022.

  Number of credit card transactions

  As of January 2022, the volume of credit card transactions has seen an increase of 96 million from the previous year. In January 2021, credit card transaction volumes had dropped by 31% (88 million) since January 2020. Credit card transaction volumes dipped to their lowest point in April 2020.

  This could be explained by the national lockdown introduced on 16 March 2020. Levels also dipped in February 2021. Contactless credit card transactions are undoubtedly popular. On average across 2020, contactless credit card transactions accounted for 40% of all credit card transactions. Following this trend, between 2021 and 2022, contactless credit card transactions increased by 80 million.

  Our recent survey found that 1 in 5 (21%) Brits would use a credit card for an expensive purchase (100+).

  Credit card lending and repayments, monthly 1993–2022

  Gross lending statistics were collected monthly from April 1993 to February 2022 and repayment statistics from January 2010 to February 2022. Throughout the latter period, the 2 statistics follow similar trajectories, with repayments always lower than lending, as expected.

  Between February 2019 and February 2022, gross lending saw a decrease of 27%, with repayments increasing by 20%. Compared to the beginning of 2010, when credit card repayment data was first collected, it has increased by 18%, whereas gross lending has increased by an enormous 82%.

  Volume and average value of credit card transactions

  The average value of transactions stayed fairly level over the year (2021). During this time, the average value of each credit card transaction was £52. The average value per transaction has not reached pre-pandemic levels, when the average transaction value was £61 in January 2020.

  Between January 2021 and January 2022, the volume of transactions increased from £198 million per month to £292 million per month. This is a 48% increase in the year.

  What credit cards are people searching for?

  Our data shows that a third of searches (33%) for credit cards on our website are related to credit cards related to bad credit. These could be cards that help build up your credit score or cards that are most likely to accept applications from people with a low credit score.

  Almost 1 in 10 (8%) searches are for travel credit cards. These cards can have a variety of benefits ranging from perks like lounge access to complimentary travel insurance. Interestingly, only 1 in 20 (4.9%) searches are for credit cards with rewards benefits, which credit card companies use to attract new customers to use their services.

  Average outstanding credit card balance

  Your outstanding balance is the money you’ve borrowed but are yet to repay. Between January 2021 and January 2022, the average outstanding balance has decreased by 2.1%. Between January 2020 and January 2021, both the average outstanding credit card balance and the number of accounts with outstanding balances increased gradually. At their individual peaks in this period, the average outstanding credit card balance was £1,829 (January 2020), and there were 38.7 million accounts with outstanding balances (February 2020). As of January 2022, 35.2 million accounts had outstanding balances.

  Credit card rewards in the UK

  Credit card companies can offer valuable rewards — cashback, free trips and discounts, among many others. These rewards can be very attractive, with 51.2% of cardholders swiping or tapping just to be rewarded. We have taken a closer look at who is most likely to use these cards, how much they spend on them and what kinds of purchases they make to reap the benefits of the cards.

  Our study of 2,000 Brits in 2020 revealed that cardholders spent an average £1,554.47 each chasing points in the past year, adding up to an estimated £23.9 billion in total. We’re most likely to spend this money on food and drinks (51.7%), but clothing and accessories (47.5%) and household items (40.5%) aren’t far behind.

  Sources used

  • Bank of England
  • UK Finance
  • Financial Conduct Authority (FCA)

• 2021 credit card statistics

  Quick overview

  • As of January 2021, there were 62.8 million credit cards issued to UK residents.
  • There were 196 million credit card transactions in January 2021. This is 31% less than there were in January 2020.
  • On average across 2020, 40% of all credit card transactions were conducted via contactless payment.
  • The total outstanding balance incurring interest from all credit card accounts decreased by 19% in January 2021 compared to January 2020.
  • The average value of purchases made using a credit card decreased by 35% (£82 less per purchase) in January 2021 compared to January 2020.
  • The average interest rate for credit cards in 2020 was 18.1%.

  Number of credit card accounts

  In January 2021, there were 62.8 million credit cards issued to UK residents. Given the 92.2 million debit cards issued to UK residents at the time, people are 47% more likely to own a debit card than a credit card.

  There has been a 3% decrease (-1.9 million) in the number of credit card accounts open between January 2020 and January 2021.

  Number of credit card transactions

  By January 2021, credit card transaction volumes had dropped by 31% (-88 million) since January 2020. Credit card transaction volumes dipped to their lowest point at the end of April 2020. This could be explained by the national lockdown introduced on 16 March 2020.

  Contactless credit card transactions are undoubtedly popular. On average across 2020, contactless credit card transactions accounted for 40% of all credit card transactions.

  Credit card lending and repayments, monthly 1993-2021

  Gross lending statistics were collected monthly from April 1993 to February 2021 and repayment statistics from January 2010 to February 2021. Throughout the latter period, the 2 statistics follow similar trajectories, with repayments always lower than lending, as expected.

  The trend shows that lending to credit card users consistently increased from January 2010 to December 2019, after which gross lending dropped by over half (53%) over the next 4 months. In December 2019, the City regulator’s new affordability rules forced banks to identify customers in persistent debt and suspend their credit cards in February 2020 if they could not respond. This likely explains the graph’s drop in gross lending and repayments.

  Credit card issuers (and lenders generally) face increasing pressure from regulators to curb certain practices that previously provided healthy revenue streams.”

  Credit card usage over the past year

  Volume and average value of credit card transactions

  The average value of transactions stayed fairly level over the year. During this time, the average value of each credit card transaction was £53.49.

  The volume of transactions dropped in April 2020. Similar to the decline in gross lending on credit cards, this drop in transactions is likely due to the City regulator’s new affordability rules, which suspended some people’s use of their credit cards from December 2019. Between February 2020 and April 2020, the volume of transactions dropped from 275 million per month to 163 million per month (a 41% decline).

  Average outstanding credit card balance

  Your outstanding balance is the money you’ve borrowed but are yet to repay. Between January 2020 and January 2021, both the average outstanding credit card balance and the number of accounts with outstanding balances decreased gradually.

  At their individual peaks in this time period, the average outstanding credit card balance was £1,829 (January 2020) and there were 38.7 million accounts with outstanding balances (February 2020).

  Outstanding balances incurring interest

  From January 2020 to January 2021, the total outstanding balance incurring interest dropped from £37.6 billion to £30.5 billion, a decrease of 19%. Meanwhile, the percentage of accounts accruing interest increased from 53.9% to 56.3%. Therefore implying that more accounts are going into debt, but the overall indebted amount has lessened.

  The total outstanding balance incurring interest is classified as the balances that are not paid off by the end of the month. The average interest rate for credit cards in 2020 was 18.1%.

  Finder's credit specialist Chris Lilly gives his insights

  • To maintain growth, card issuers are forced to either trim costs elsewhere or find new ways to generate revenue. For consumers, this means that we’ve seen a shortening of promotional 0% periods over the last few years and an increase in average APRs (the annual percentage rate is a summary of the annual cost of borrowing).
  • There’s also closer scrutiny during the application and approval process, so that card issuers can demonstrate that they’re only lending responsibly (not to mention, to protect their own backs from potential defaults). Thankfully, more card issuers are looking to non-standard lending as a new revenue stream, using smarter technology to identify safe ways to lend to those with bad credit, who were a once-overlooked demographic. For consumers, this means there is greater selection for those with less-than-perfect credit scores, albeit with APRs that are still high.

Click here for more research. For all media enquiries, please contact:

Matt Mckenna
Head of UK communications
T: +44 20 8191 8806