A man paying with a credit card

How Many Credit Cards Does the Average Person have UK

Credit cards are special cards that change how we use money. They make buying things easy and smooth. The average person in the UK holds approximately 1.7 credit cards. While some individuals prefer minimalism with just one card, others manage multiple cards for various purposes. Responsible usage and understanding your financial needs are key factors in determining the right number of credit cards for you. Whether you’re a minimalist or a collector, make informed decisions to navigate the credit card landscape effectively💳🇬🇧. Let’s see why they are important:

Why Credit Cards Are Useful:

  1. Easy to Use: With credit cards, you don’t need to carry cash. You can buy groceries, book flights, or shop online without cash.
  2. Accepted Everywhere: You can use credit cards in many places around the world, from local shops to big stores.
  3. Safe to Use: Credit cards have safety features. If you lose your card or someone steals it, you won’t have to pay for the charges. Most cards also have fraud alerts.
  4. Build Your Credit: Using a credit card the right way can help you build a good credit history. A good credit score helps you get loans, mortgages, and more.

Credit Cards in the UK (2024):

Let’s look at what’s happening with credit cards in the UK now:

  1. More Debt: In 2023, people owed a lot of money on credit cards. Late payments increased, and many people struggled to pay back their debts.
  2. Higher Interest Rates: The cost of borrowing money on credit cards went up. In 2022, the average rate was 18.43%. By 2023, it was 22.77%.
  3. Buy Now, Pay Later: People are using services where they can buy things and pay for them later in smaller amounts without extra charges.
  4. Better Security with Biometrics: New ways to prove your identity, like using fingerprints or face scans, are making credit card transactions safer.
  5. Changing Travel Rewards: Companies are rethinking the rewards they offer for travel. They want to find a balance between what people want and what they can afford.

A couple paying with a credit card

Who Uses Credit Cards in the UK?

  • 69% of UK adults have a credit card. That’s about 36.2 million people.
  • On average, each person has 1.7 credit cards.

Who Uses Credit Cards More?

  • Men: 71% have a credit card.
  • Women: 65% have a credit card.

Age and Money Matter:

  • Younger people use credit cards more.
  • People with higher incomes are more likely to have credit cards.

Big Credit Card Companies in the UK:

There are many companies that offer credit cards in the UK, like Barclays, American Express, HSBC, and more.

Why Do People Have Multiple Cards?

  1. More Rewards: Different cards offer different benefits, like cash back or travel points.
  2. Safety: Having more than one card can be a backup in case one gets lost or stops working.
  3. Special Needs: Some cards are better for certain things, like travel or shopping at specific stores.

How People Spend with Credit Cards in the UK

Click the link below to download an infographic on How People Spend with Credit Cards in the UK.

Understanding Debit Card Usage Trends in the UK

Debit Card Spending in the UK (October 2023):

  • Total spending: £67.2 billion.
  • Average transaction: £33.30.

Spending Abroad Trends:

  • August 2022 spending: 16.3% higher than January 2023.

Keeping an eye on these debit card trends is essential for managing finances effectively in 2024.

How People Spend with Credit Cards:

  • Each day, about 11.6 million credit card transactions happen in the UK.
  • The average amount spent in one transaction is £54.50.
  • People are using less cash and more contactless payments.
  • On average, people spend £354 a month with their credit cards.

Credit Card Facts:

  • There are about 36 million active credit card accounts in the UK.
  • Some cards are not used but are kept for emergencies or special needs.
  • Even unused cards can affect your credit history.

A lot of credit cards

The Credit Card Market in the UK:

  • The credit card market is big in the UK, making billions of pounds.
  • Credit card companies make money from interest, fees, and other services.

In Conclusion:

Credit cards are popular in the UK. They make buying things easy and offer rewards. But it’s important to use them wisely to avoid getting into debt. Think about what you need, read the terms carefully, and keep track of your spending.