Credit Card Usage | Credit Card Topics

Fed Report Reveals That More Cardholders Only Make Minimum Payments While Some See Limits Rise

By: Andrew Allen, 4/10/2025

You’ve probably heard the phrase “past performance is not indicative of future results.” Investment literature often includes that line, or some version of it, to let potential investors know they shouldn't assume what an investment asset will do based on its past record. But looking into the past for clues that can inform predictions of future performance isn’t an exercise without merit. Credit card issuers can use data from recent history to identify trends and make... read more »

What is a Card Not Present (CNP) Transaction? When Consumers Make Purchases Without Swiping

By: Eric Bank, 4/9/2025

As part of my research for this article, I reviewed my credit card usage and found that about 75% of my spending was through CNP (card not present) transactions. In other words, I made most of my purchases without ever tapping or swiping my physical card. A card-not-present (CNP) transaction is one where you buy something without presenting your card to a merchant. A CNP transaction requires you to manually enter your card number, expiration date, and card verification code,... read more »

What is a Co-Branded Credit Card? A Guide to Loyalty-Based Rewards Cards

By: Eric Bank, 4/8/2025

Half the credit cards in my wallet are co-branded. They include cards for a hotel chain, a gas station, and a brokerage. While my regular credit cards are perfectly fine for most uses, these co-branders provide extra perks that make them worth the real estate they occupy in my pocket (and the annual fees). A co-branded credit card is the result of a partnership between a card issuer and a brand — like an airline, hotel, or retailer — that offers exclusive rewards and perks tied... read more »

Despite High Interest Rates, 60% of Credit Card Users Carry a Balance From One Month to the Next

By: Andrew Allen, 4/5/2025

Times are tough for the American consumer. The stock market slumped during the first three months of 2025. One major index, the S&P 500, posted its worst quarter since 2022. And the chances of it making a rapid recovery appear to dwindle by the day. Consumer sentiment has also been waning in the early portions of the year. The University of Michigan’s Index of Consumer Sentiment fell in March, representing a drop of more than 28% from sentiment figures posted in March... read more »

Visa Reveals Strategies Credit Card Issuers Can Implement to Increase Customer Lifetime Value

By: Andrew Allen, 4/4/2025

Credit card issuers face competition on a number of fronts when they try to attract new customers. Not only must they contend with new cards on the market that offer attractive benefits and previously unheard of introductory 0% APR periods, but new types of payment providers also vie for consumers’ attention. Buy now, pay later (BNPL) solutions are growing in popularity. The worldwide value of the BNPL market exceeded $37 billion in 2024, representing an increase of nearly $7... read more »

New Research Reveals That Credit Card Behaviors May Be Set in Stone

By: Andrew Allen, 3/27/2025

Obtaining a credit card for the first time can be a landmark moment in one’s financial life. You may have had to complete numerous applications before a lender approved you for your first card, but there is something empowering about holding your new card in your hand for the first time. It’s as if you can almost feel your purchasing power increase as you admire your name embossed on the card’s shiny plastic. Perhaps a lot has changed in your life since the time you... read more »

Waste Reduction Efforts May be Impacting Card Spend in the D.C. Area

By: Andrew Allen, 3/25/2025

Elon Musk and the Department of Government Efficiency (DOGE) have been busy over the past two months in the Trump administration’s quest to “maximize governmental efficiency and productivity.” The department has overseen a number of cost-cutting measures, including streamlining workforces and canceling contracts and leases. Those actions have resulted in an estimated savings of $115 billion through March 19, according to the DOGE website. Musk and his team have also placed an... read more »

Opinion: Why Seniors Struggle to Retire Credit Card Debt When They Hit Their ‘Golden’ Years

By: Bobbi Rebell, 3/24/2025

I love a good retirement ad. They usually feature Adirondack chairs, a sunset, and of course, adorable grandchildren frolicking around a couple of exceptionally good-looking older retirees who are definitely NOT stressed out about money. There is no way these people have credit card debt. But guess what? They are actors. They are not real. And credit card debt for retirees is apparently a very real thing. According to LendingTree, 93% of retirement-age adults carry... read more »

What Does No Preset Spending Limit (NPSL) Mean?

By: Eric Bank, 3/18/2025

Credit cards with no preset spending limits (NPSL) may sound like a dream. The concept itself is alluring — you can charge to the sky without ever hitting a spending limit. But hold on to your socks. An NPSL card is not a card without spending limits. An NPSL credit card does not have a fixed spending limit but rather a variable spending limit based on factors inlcuding payment history and income. In contrast to a standard credit card with a fixed credit limit, the... read more »

What is Accrued Interest? How Credit Card Interest Adds Up Over Time

By: Marcie Geffner, 2/6/2025

Definitions of accrued interest tend to be complicated – so much so that I'm dismayed because the concept is simple and should be easy to understand. Accrued interest is interest a borrower owes a lender, but hasn't yet paid. With credit cards, the borrower is the person who uses the card. The lender is the card company. With investments, the borrower is the corporation, government agency, or other entity that issued the debt. The lender is the investor. As both a card... read more »

What is a Virtual Credit Card Number? How VCC Technology Helps Consumers Avoid Fraud

By: Eric Bank, 12/3/2024

Now, if you buy into the premise behind The Matrix, we’re all living in some virtual dreamland. Is life but a dream? Not to those of us who feel we exist. But many credit cards do, indeed, live that double life by having both real and virtual account numbers. A virtual credit card number is a temporary, unique number generated for online transactions to protect your real credit card information from fraud. And those virtual numbers pack a punch when it comes to... read more »

How Credit Card Chargebacks Work and Protect Consumers

By: Mike Senecal, 12/2/2024

I imagine Amazon needs quite a few resources to photograph and document every single delivery in front of every single door, everywhere in the world. They do it to protect themselves against credit card chargebacks from consumers disputing transactions as unauthorized or fraudulent — which laws originating in the 1970s give them every right to do. A credit card chargeback is a payment reversal initiated by a cardholder to dispute a merchant transaction. Problems arise for... read more »

What is a Statement Balance? How to Read and Understand Your Credit Card Bill

By: Mike Senecal, 11/26/2024

Credit card debt is revolving, meaning you can carry a balance on your account — and pay interest on it — for as long as you want. I don't recommend that! Your card issuer keeps tabs on what you owe in billing cycles, typically of 28 to 31 days. Your statement balance reflects the total amount you owe at the end of each cycle. Your credit card statement balance includes the total amount you owe from the previous billing cycle, along with new purchases, interest, fees, and... read more »

Put a Card at the Center of Your Travel and Expense Program to Maximize Visibility and Control

By: Mike Senecal, 11/22/2024

Corporate travel and expense management platforms can't offer employees and teams a comprehensive solution because they can only process the transactions you put into them. Center "recenters" expense management from platforms to its CenterCard, an integrated corporate credit card with software and a mobile app that makes managing holistic company spend simple. Teams are everywhere these days. Employees use their CenterCards wherever and whenever they need to find... read more »

What is a Credit Freeze and How Can It Help Secure Your Credit Reports?

By: Mike Senecal, 11/12/2024

Are you who your data says you are? Digital transformation has caused an explosion of data breaches, identity theft, and fraud that puts your credit report at risk even when you're doing everything right. Fortunately, regulators have stepped in to give you more control over your financial data than you may realize. In 2018, Congress gave consumers the right to direct the three major U.S. credit bureaus — Equifax, Experian, and TransUnion — to freeze their credit at no charge. ... read more »

What is a Card Verification Value? Why Your Credit Card Has a CVV or CVC Number

By: Eric Bank, 10/30/2024

What on God's Green Earth is a Card Verification Value? And why does your credit card have one of those CVV or CVC numbers anyway? Well, the cold, hard truth is that there are fraudsters out there just waiting to swipe your credit card info. A Card Verification Value (CVV) or Card Verification Code (CVC) is a three- or four-digit security number on a credit card used to verify that the cardholder has the physical card during online or phone transactions, providing an extra layer... read more »

What is a Cardmember Agreement? A Guide to Identifying Credit Card Terms and Fees

By: Jon McDonald, 9/25/2024

Even as a finance expert, I’ll admit I used to avoid reading the whole cardmember agreement until a few years ago. Here’s what changed: I was flying to Miami from San Francisco with a connecting flight in Atlanta. Amidst all the post-COVID airline craziness, my first flight was canceled, causing me to miss my connection. The airline told me my $400 flight was non-refundable, even though it wasn’t my fault I missed it — ouch. I scoured my cardmember agreement to see if I... read more »

What is the Credit CARD Act of 2009? How the Legislation Impacts Consumers

By: Marcie Geffner, 9/5/2024

Throughout my life, I've never had significant problems with my credit cards or card debt. That may be because I've had two big advantages: a good financial education and a career as a financial writer. But also, I've been lucky. Many people without my advantages have serious problems with cards and card debt. Those problems would almost certainly be much worse were it not for the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. The CARD Act is... read more »

What is a Credit Card APR? How Issuers Calculate Interest Rates

By: Eric Bank, 8/27/2024

Credit card APR is a term that is frequently used but not always understood. Sure, most folks have a notion that it’s some sort of interest rate, but what does it include, and what does it leave out? Does it truly represent what you’ll pay to use a credit card? The annual percentage rate, or APR, is the standardized yearly rate credit card issuers charge when you carry a balance. It represents the cost of borrowing money and offers potential insight into how much interest... read more »

What is an Introductory APR on a Credit Card?

By: Erica Sandberg, 8/26/2024

Want to borrow money for purchases and then revolve balances without any finance fees added to the amount you owe? How about transferring an expensive existing debt to a new credit card that won't charge you any interest for a specific period? Welcome to the world of credit cards that offer introductory APRs. These time-sensitive deals can save you a lot of money when you use them correctly while helping other aspects of your financial life. Before applying for... read more »

What is a Credit Card Signup Bonus? How the Popular Incentive Works

By: Eric Bank, 7/11/2024

When I received my first signup bonus, I was over the moon. It proved addictive — all my subsequent credit cards had to provide this little sugarplum to earn a place in my wallet. I suspect I'm not alone in this. A credit card signup bonus is a reward a credit card company offers new customers to encourage them to get a credit card. This usually comes as cash back, points, or miles. Issuers use this bonus to attract new customers and get us to use the card immediately, which... read more »

What is a Credit Card Promotional Period? How to Manage and Maximize Introductory Offers

By: Eric Bank, 7/10/2024

My heart wanted this nifty new camera with a retro design, but my budget was implacably opposed. My solution was to obtain a new credit card with an introductory 0% APR for 15 months. What once seemed impossible now became easy-peasy. Say, "Cheese!" The credit card promotional period is when, under special terms, the interest rates of credit cards are much lower or even zero. They can apply to new purchases, balance transfers, or both. You can use the promotion period to pay for... read more »

What is an Authorized User? A Guide to the Pros, Cons & Legal Responsibilities

By: Eric Bank, 6/6/2024

An authorized user on a credit card is someone the primary cardholder adds to their account. As an authorized user, you can use the credit card just like the person who owns the account, but you don’t have to apply for the card yourself. The primary cardholder is still the one responsible for paying the bill. You get your own card with your name on it and can buy things or pay bills just like you would with any other credit card. In this article, we'll describe how to... read more »

53 Illuminating Credit Card Usage Statistics (2025)

By: Mike Senecal, 5/29/2024

Cooperation is at the heart of the intertwined relationships among consumers, merchants, credit card issuers, and the networks supporting them. Consumers drive digital transformation in financial services by demanding greater convenience and flexibility. Merchants adapt to consumer demand by expanding how they accept payments. Issuers compete for business by creating more effective and lucrative consumer incentives and better financial management tools. Networks look for ways to... read more »

9 Timely Credit Card Default Statistics (2025)

By: Marcie Geffner, 5/13/2024

Millions of people use credit cards on a regular basis without ever failing to make at least the minimum payment every month. But suppose you have a card for which you can't make the minimum payment for an extended number of months? What happens then? At first, your account will be delinquent. Your credit scores will be negatively impacted, and you likely won't be able to obtain the best new cards. But you may still be able to use your card for more transactions. If you... read more »

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All articles tagged Credit Card Usage (142)