There are 12,174,925 credit cards in Australia as of September 2024, netting a national debt accruing interest of $19.1 billion.
For many Australians, managing credit and debt through credit cards is a common element of their day-to-day money habits, while for others a few bad mistakes have resulted in a downward debt spiral. But what does the state of Australia's credit card use actually look like?
The count of credit cards in Australia saw a consistent decline since 2018, with this trend persisting throughout 2019, 2020 and 2021 until hitting a low point of 13,149,442 in April 2022. However, a notable turnaround began from that point onward, marked by a gradual recovery. By September 2024, the number of credit cards had rebounded to 12,174,925, underscoring a renewed sense of stability within the Australian credit card market.
According to the Finder CST survey on June 2023, it was revealed that 30% of Australians rely on credit cards to effectively manage their finances. Interestingly, this dependence slightly skewed towards women, with 31% of women leaning on credit cards, compared to 29% of their male counterparts.
While 12.2 million Australians currently have a credit card, some have run into difficulties accessing this form of credit. Of those who have been denied, unsteady income (34%) is the top culprit, followed by having a bad credit score (27%) and having too much debt (23%).
Emergencies, rewards and big-ticket items among top reasons for taking out a credit card.
Worryingly, only half of Aussies who find themselves buried under out-of-control credit card debt would be able to dig themselves out.
In the December 2023 Finder CST survey, it was revealed that 13% of Aussies had fallen behind on repayments by 30 days or more. Notably, 2% of cardholders faced a more concerning delay of over 60 days.
According to the Reserve Bank of Australia (RBA), the average standard credit card rate is 20.78%. Between 1995 and 2010, the average credit card rate moved up and down with the cash rate. Since 2010, the average credit card interest rate remained steady while the cash rate fell dramatically. Even following a series of 13 dramatic cash rate increases over the last 2 years, the credit card interest rate has remained relatively stable.
What do the experts say?
Amy Bradney-George, credit card expert at Finder
"You can use a credit card repayment calculator to work out a payment plan that's affordable for you. Some credit card providers (including CommBank, Westpac and American Express) also offer instalment plans that let you pay off some or all of your balance in equal instalments over a fixed period of time, which can make it easier to budget for them."
Taylor Blackburn, personal finance specialist at Finder
"Credit cards aren't just free money, so be careful with your spending habits and avoid purchasing things you don't really need. If you do find yourself in debt, you can buy yourself some extra time by taking out a 0% balance transfer credit card and consolidating your debt. The less you pay on interest, the more you can put towards actually paying off your debt."
Graham Cooke, head of consumer research at Finder
"There are 2 very different types of credit cards on the market in Australia – cards with low interest rates and credit cards with rewards. Both are fantastic but both are aimed at very different customers. Start with a basic card, with a low rate. Only if you can successfully spend on this card and pay it off in full every month should you consider upgrading to a rewards card. If you do, however, the rewards can be great."
The table below depicts the average number of accounts per year, the total number of purchases and total purchase spend nationally, the average balance per card and the proportion of that balance accruing interest.
Finder's 2024 Credit Card Report delves into the state of Australia's credit card market. Finder's experts share their thoughts on how credit cards are changing and examine the resurgence of credit cards after 2022. Australians have opened 356,000 new credit card accounts since April 2022. The total value of credit card transactions has also never been higher.
But Australians are also getting better at managing their cards, paying off a record 88% of our balances. Finder's experts share their thoughts on how credit cards are changing and the future of the industry.
Due to differences in population, it's no surprise that there are 551 million more credit card accounts in the US than circulating credit cards in Australia. The average American credit card debt is also 26.6% larger, with $3,911 spent on the average card each month. To see more statistics on American credit cards, head to this page.
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How many 18-25 year-old Australians have a credit card?
Hi Lee. Sorry, these statistics are not available to us. Try the Reserve Bank of Australia. They publish credit card and charge card statistics.
Jacob.