Credit Card Confidence Jumps to Start 2025

Credit card confidence jumped in January, reaching its highest level since October, according to the latest LendingTree Credit Card Confidence Index.

Every month since September 2018, LendingTree has asked a nationally representative sample of credit cardholders the following: “Think about all of your credit cards. On a scale of 1 to 5 (5 being very confident, 1 being not at all confident), how confident are you that you can pay the entire monthly statement balance on all of those cards in full this month?” Those who responded with 4s and 5s were called confident, while those who responded with 1s or 2s were deemed not confident.

Here’s what you need to know about this month’s data.

Key findings

• Credit card confidence jumps to start 2025. 61% of cardholders say they’re confident in their ability to pay their credit cards’ monthly statement balances in full this month. That’s up six points from December for the highest mark since October’s 64%. Meanwhile, just 24% say they aren’t confident.
• The gender confidence gap soars to its highest level since 2023. 72% of male cardholders express confidence, up 10 points from December. Meanwhile, female cardholders’ confidence level rose just two points to 49%. That 23-point gap between male and female confidence levels is the highest since December 2023.
• Democrat and Republican cardholders are equally confident. 62% of Republicans and Democrats express confidence, up six and seven points, respectively, from December. Meanwhile, 60% of independents say they’re confident, up five points from last month.

Confidence jumps to start 2025

For the second straight year, credit cardholder confidence rose in January. It rose six points to 61%, the highest monthly increase since April and the highest mark since 64% in October. Last January, confidence jumped by nine points. Until then, we hadn’t seen confidence rise in January since 2019.

Just 24% of cardholders say they aren’t confident. That’s the lowest rate in January since 2021’s 20%.

This clearly shows most cardholders feel they’re starting off 2025 on the right foot, though not everyone feels quite so good.

Gender gap soars

More than 7 in 10 cardholding men (72%) express confidence, while just 16% say they aren’t confident. That 72% is up 10 points from December and is the highest since October. Confidence rose among women as well, albeit less dramatically. Nearly half of women (49%) express confidence, while 33% say they aren’t confident.

These monthly changes created an even more massive gender gap than usual — 23 points, the biggest since December 2023. In the index’s six-plus-year history, there’s never been a month in which women have been more confident about their credit card bills than men. In fact, there have only been eight months in which the gender confidence gap fell to single digits, but none since July 2021. (The gap was seven points that month, equaling the record low set in April 2021.)

That 23-point gap is the second-highest in the index’s history. The gap reached 24 points in December 2023, July 2022 and January 2020.

The smallest gap? Just seven points in April 2021 and July 2021.

Agreement between Republicans and Democrats? Yes

We typically see differences between the political parties as well, though usually not as large as the gender gap. For example, in September and October 2020, just before the previous presidential election, Republicans were 13 points and 16 points more likely, respectively, to express confidence than Democrats. Then, in November 2020, that gap dropped to three points before it flipped. By January 2021, Democrats were 11 points more likely than Republicans to express confidence.

Perhaps surprisingly, those massive gaps have shrunk significantly in recent years. In 2024, it was never more than six points (65% of Democrats versus 59% of Republicans in May 2024). Now, in January 2025, that gap vanished entirely: 62% of Republicans and Democrats express confidence.

Independents aren’t quite as optimistic, though 60% express confidence.

Strong start to 2025 likely, followed by uncertainty over new president, Fed cuts

I expect cardholders’ strong start to 2025 will continue in February as Americans continue to focus on paying down their holiday debt. The good times might even continue for a month or two after that, with tax refund checks helping people pay off more of their high-interest debts.

One of the best things cardholders can do — whether they feel good or wobbly about their finances — is knock down their credit card debt. If you don’t, sky-high APRs mean it’ll only continue to grow. The good news is you have options. A 0% balance transfer card might be your best weapon against high interest rates, though a personal loan can help, too.

And don’t forget that you might be able to lower your interest rate with a phone call. A June 2024 LendingTree survey found that 76% of cardholders who asked for a lower interest rate on their credit card in the past year got one, with an average rate reduction of 6.5 points. That can turn a 30.00% card into a 23.50% card or a 24.00% card into a 17.50% card. It’s absolutely worth the call.

Find your perfect card in 30 seconds. Check your approval odds so you can shop smarter.

Methodology

LendingTree commissioned QuestionPro to conduct an online survey of 2,039 Americans ages 18 to 79 from Jan. 2 to 6, 2025. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control.

Media inquiries about the Credit Card Confidence Index

Want to talk to Matt — author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life” — about the latest Confidence Index numbers? Email him at [email protected]. You can also reach out via X at @bymattschulz or Instagram at @bymattschulz.