“How Retail Credit Card Balances Shifted in 2022”

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Total Retail Credit Card Debt Increased by 6.5% in 2022

In 2022, retail credit card debt saw a 6.5% increase, rising by $7.3 billion to reach $118.9 billion. This growth was influenced by inflation, although it was not as steep as the 16% increase observed in traditional credit card debt, which reached $910 billion.

Balance Increases Similar Across Credit Scores in 2022

Experian data from Q3 2022 shows that retail card balances increased uniformly across different credit score ranges, with increases ranging from 4.4% to 7.3%. These increases were below the 8.2% inflation rate for the same period.

Average Retail Card Balances Increase Uniformly Across States

In 2022, all 50 states and Washington, D.C., experienced increases in average retail card balances, ranging from 2.3% to 10.1%. Texas had the highest average balance at $1,443, while Hawaii had the lowest at $761.

Younger Generations Add to Their Retail Card Balances, Despite Buy Now, Pay Later

Despite the rise of buy now, pay later options, younger generations significantly increased their retail card balances in 2022. Generation Z saw an 11.3% increase, while Millennials experienced a 10.7% rise. Generation X had the highest average balance at $1,422.

Retail Cards Remain Relevant Despite Alternatives for Consumers

Retail cards have a long history, predating bank-issued credit cards. While they still play a role in in-store sales for retailers like Walmart and Target, alternative payment methods such as buy now, pay later and mobile payments are gaining popularity. E-commerce has also contributed to the decline in retail card usage, growing from 1% of all sales in 2000 to 15% today.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to assist you with the best mortgage solutions tailored to your needs.

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Feel free to reach out to O1ne Mortgage at 213-732-3074 for any mortgage service needs. We are committed to providing you with the best mortgage solutions tailored to your needs.