Credit Card Confidence Sees 2nd Straight Monthly Increase to Start 2025

Credit card confidence rose in February, 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 for a second straight month to start 2025. 63% of cardholders say they’re confident in their ability to pay their credit cards’ monthly statement balances in full this month. That’s up two points from January for the highest mark since October’s 64%. Meanwhile, just 22% say they aren’t confident, the lowest rate since July.
• Gen Z confidence spikes. 78% of Gen Z cardholders express confidence, up 11 points from January. That’s the highest rate since 82% in September 2022 and the second-highest since at least March 2021.
• Female confidence jumps sharply, too. 56% of female cardholders express confidence, up seven points from January. That’s the highest rate since 57% in June 2024. Meanwhile, 70% of male cardholders express confidence, down two points from January. That shrunk the confidence gender gap to 14 points, the lowest since August 2024, when it was also 14.
• A partisan gap returns. 69% of Republicans express confidence, up seven points from January. Meanwhile, 63% of Democrats (up from 62% a month ago) and 59% of independents (down from 60%) say they’re confident. It’s the widest gap between the parties since May 2024.

Confidence jumps to start 2025

Credit cardholder confidence rose in February, the second straight monthly increase to start 2025. It rose two points to 63%, the highest mark since 64% in October. It’s the second straight year in which we saw increases in both January and February.

Just 22% of cardholders say they aren’t confident. That’s the lowest rate since July 2024’s 22%.

This clearly shows most cardholders feel they’re starting off 2025 on the right foot, though some groups are feeling better than others.

Gen Z, female confidence spikes

Nearly 8 in 10 cardholding Gen Zers ages 18 to 28 (78%) express confidence, while just 7% say they aren’t confident. That 78% is up 11 points from January and is the highest since September 2022, when confidence hit 82%. February’s total is the second-highest since at least March 2021 and is far higher than any other age group. Just 56% of Gen Xers ages 45 to 60 express confidence, while 59% of baby boomers ages 61 to 79 and 66% of millennials ages 29 to 44 do the same.

Confidence also rose among women, albeit less dramatically. More than half of women (56%) express confidence, while 29% say they aren’t confident. Meanwhile, 70% of men express confidence, down two points from January.

Those changes shrunk the gender gap significantly to 14 points, the smallest since August. That’s still a big number, however. 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.)

Still, February’s numbers are a significant shift. The last time the gap was less than 14 points was April 2024.

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

Partisan confidence gap returns

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). Then, in January 2025, that gap vanished entirely: 62% of Republicans and Democrats expressed confidence.

In February 2025, the gap returned. Republicans were six points more likely than Democrats and 10 points more likely than independents to express confidence (69%, 63% and 59%, respectively). It’s the biggest gap since May 2024.

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

I expect cardholders’ strong start to 2025 will continue in March 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.

Methodology

LendingTree commissioned QuestionPro to conduct an online survey of 1,999 Americans ages 18 to 79 from Feb. 4 to 5, 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.

We defined generations as the following ages in 2025:

• Generation Z: 18 to 28
• Millennial: 29 to 44
• Generation X: 45 to 60
• Baby boomer: 61 to 79

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.