Credit Card Confidence Sinks to Lowest Level Since December 2023

Credit card confidence fell in December, sinking to its lowest level since December 2023, 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 hits its lowest level since December 2023. 55% of cardholders say they’re confident in their ability to pay their credit cards’ monthly statement balances in full this month. That’s down four points from November and nine points from October. It’s the lowest mark since December 2023’s 51%, which is the lowest since the index began in 2018. Meanwhile, 30% say they aren’t confident, also the highest since December 2023.
• Men’s confidence plunges to its lowest level in more than two years. 62% of male cardholders express confidence, down eight points from November. That’s the lowest since June 2022’s 60%. Still, male cardholder confidence levels remain far higher than those of females. Female cardholders’ confidence level fell to 47%, down a point from November.
• Baby boomers’ confidence jumps, while all other age groups fall. 55% of baby boomer cardholders express confidence. That’s a three-point increase from November, a month after a 13-point decrease. Meanwhile, confidence levels for Gen X, millennial and Gen Z cardholders all fell by at least five points.

Confidence hits lowest level since December 2023

The holiday season can be a rough, tough time for credit cardholders. This is the second consecutive year in which cardholder confidence has fallen in December. Our survey showed that 55% of cardholders expressed confidence in December. That’s down four points from November and nine points from October. It’s the lowest level seen since December 2023.

Still, oddly enough, throughout the history of the index, we’ve seen cardholder confidence increase in December more than it’s decreased:

• 2018: Down 3 points
• 2019: Up 4 points
• 2020: Up 5 points
• 2021: Up 5 points
• 2022: Up 10 points
• 2023: Down 7 points
• 2024: Down 4 points

That’s a significant difference from November. Since we began tracking confidence levels in 2018, there has been only one year in which confidence increased in November. In 2018, it spiked by 8 points. Since then, it has decreased — often significantly — every November.

As a whole, however, the year has been more positive for cardholder confidence than previous years. That marks a major deviation from a trend that began after confidence peaked at 74% in October 2020. Consider the monthly averages for each of the past several years:

• 2020: 67% confident
• 2021: 66% confident
• 2022: 62% confident
• 2023: 59% confident

While those yearly average declines aren’t huge, their consistency is noteworthy. After all, multiple years of small decreases add to a larger one, and that’s what we saw through the end of 2023. However, it appears that those declines might be a thing of the past. Despite the volatility, 2024’s monthly average is 61% confident, a jump from 2023 and a tick lower than 2022.

Men’s confidence sinks to 2-year low

About 6 in 10 cardholding men (62%) express confidence, while 22% say they aren’t confident. That 62% is down eight points from November and 12 points from October. It’s the lowest total since June 2022, when confidence sunk to 60%.

What hasn’t changed, however, is that there’s a massive gender gap. Despite the sizable drop in men’s confidence, it’s still far higher than women’s confidence levels. Just 47% of female cardholders express confidence, down from 48% in November and 54% in October.

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.)

In December 2024, that gap shrunk by seven points. However, there’s still a difference of 15 points, which matches the average gap since the start of the index in 2018.

Baby boomers’ confidence jumps, while all other age groups dip

We typically see significant differences among age groups as well, though usually not as large as the gender gap. December is no different.

For the eighth straight month, Gen Z cardholders ages 18 to 27 are the most confident, with 65% expressing confidence. That’s well ahead of millennials ages 28 to 43 (58%) and baby boomers ages 60 to 78 (55%). Gen Xers ages 44 to 59, meanwhile, brought up the rear at 46%. That’s nothing new for Gen Xers. They’ve had the lowest confidence among the age groups we track every month since August 2022.

Despite trailing some of their younger counterparts in December, baby boomers were the only age group whose confidence grew in December. It rose from 52% in November to December’s 55%. All other age groups saw decreases of at least five points, with Gen Z and millennials both falling by seven points.

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

I expect cardholders to start 2025 strong as consumers focus on paying down their holiday debts in January. Historically, January has been a mixed bag, confidence-wise — it jumped nine points last January but had dipped slightly in the previous three years — but I expect that we’ll see positive numbers in January 2025.

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 2,049 Americans ages 18 to 78 from Dec. 10-12, 2024. 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.

We defined generations as the following ages in 2024:

• Generation Z: 18 to 27
• Millennial: 28 to 43
• Generation X: 44 to 59
• Baby boomer: 60 to 78

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.