How Does Your Credit Card Credit Compare to Others in the US?

Credit card debt in the US hit a record high in Q2, and Americans are paying the price – in interest.

The Federal Reserve Bank of New York reported Tuesday that credit card debt rose to $1.14 trillion as of Q2 2024. That’s a $27 billion increase from the previous quarter and a $111 billion jump from the same time last year. . The report was nationally representative, based on a national sample of data taken from the New York Fed’s Consumer Credit Panel.

Related: Robinhood Offers First-ever Credit Card – and It’s Available in 10 Karat Gold

Meanwhile, the second quarter Credit Industry Insights Report released Thursday shows that the average American now has an average of $6,204 in credit card debt, or 6% more than last year’s average of $5,947.

TransUnion reported 545 million credit cards in use in the US in Q2 2024.

Paul Siegfried, senior vice president and business leader of credit cards at TransUnion, says there is a difference between how high-risk and low-risk borrowers use their credit cards.

“High risk [borrowers] they seem to be facing the most significant inflationary pressure and as a result, rely on their cards more, which is reflected in the growth of balances and higher usage,” he said.

Related: New Rules for ‘Buy Now, Pay Later’ Programs – Here’s What You Need to Know

At the same time, TransUnion found that credit card originations, or approvals for new credit cards, mortgages, and loans, fell 7% year over year.

“Origins will continue to decline for middle- and lower-income borrowers as issuers look to less risky borrowers,” Siegfried said.

According to Forbes Advisor, the average annual percentage rate (APR) for a credit card is 27.62% this week.