GALLUP NEWS SERVICE
PRINCETON, NJ -- In modern American life, credit cards are perhaps the most important means of financial transactions, providing people with immediate cash and credit -- although often at a steep price. A recent Gallup poll shows that 81% of Americans say they have a credit card, up from 76% a year ago. Among those who have any cards, the average number they use is 4.0, exactly the same as last year. Almost a quarter of all Americans, 23%, say they have five or more credit cards.
| Number Of Credit Cards Americans Own |
 |
| Apr. 8-11, 2002 |
Conducted April 8-11, the poll also shows that the increase in the number of credit cards comes disproportionately from low income adults. Last year, 46% of people with annual incomes of less than $20,000 a year said they had at least one credit card. This year, 55% of people in the same income group say they have a card. That nine-point increase is nearly matched by the seven-point increase among people earning from $30,000 to $50,000 a year. Only two-point increases are found in the other two income categories.
| Increase in Percentage of Credit Card
Owners Compared by Household Income |
 |
| Apr. 8-11, 2002 |
Ownership of credit cards is also partially related to age. Just over seven in 10 each of the youngest and oldest age groups have a credit card, while close to nine in 10 of the two age groups in the middle have at least one card. The largest increase in ownership has come among the 30-49 age group respondents.
| Increase in Percentage of Credit Card
Owners Compared by Age |
 |
| Apr. 8-11, 2002 |
Only four in 10 Americans always pay off monthly balance
The poll also shows that only 41% of Americans who have credit cards say they always pay off the full amount of their credit card balances each month, while another 14% say they usually do. In addition, 28% say they usually leave a balance, though they pay as much as they can, and 15% pay no more than the minimum balance.
That leaves 43% of credit card owners -- or just over a third of Americans overall -- who regularly leave some part of the balance to roll over to the next month. This includes 28% who say they pay as much of what they owe as they can, although they usually leave some balance, 13% who usually pay only the minimum balance due, and 2% who sometimes pay less than the minimum amount due. These numbers are virtually the same as those Gallup measured last year at this time.
| How People Deal With Their Monthly Credit Card Bill |
 |
| Apr. 8-11, 2002 |
In effect, people who fail to pay off the full amount of the balance each month are taking out very costly loans. The interest rates are typically higher for lower income people whose credit ratings are not as solid as those of higher income Americans. As shown below, this year among credit card owners with the lowest level of annual household incomes, 55% regularly use their credit cards to obtain short-term loans, compared with 42% of credit card owners whose annual income is $50,000 or more.
| Percentage of Card Owners Who Regularly Use Cards for Short-term Loans Compared by Household Income |
 |
| Apr. 8-11, 2002 |
The gap between upper and lower income Americans using credit cards for short-term loans has narrowed since last year. People in both of the two lower income groups show a decline in the percentage using credit cards for loans, while both the higher two income groups show slight increases.
Little worry about meeting minimum payment
Just 16% of credit card owners are worried that they will not be able to make the minimum payment on their credit card balance. That compares with 19% who said they were worried last year.
While the overall difference in the percentage of card holders who are worried about making the minimum payment has not changed substantially since last year, there appears to be a sizeable difference between high and low income adults on this measure. This year, 44% of the lowest income Americans say they are worried about making minimum payments, compared with 21% in the same income category who expressed that worry last year. By contrast, there is a decline in the number of people in the $30,000 to $50,000 a year category who are worried about making minimum payments -- from 23% last year to 9% this year.
| Percentage of Card Owners Worried About
Making Minimum Monthly Payments on Credit Card Bills Compared by Household Income |
 |
| Apr. 8-11, 2002 |
Survey Methods
Current results from the Gallup Poll are based on telephone interviews with 1,003 national adults, aged 18+, conducted April 8-11, 2002. For results based on the total sample, one can say with 95% confidence that the margin of sampling error is +/- 3 percentage points. For results based on the sample of 856 adults with credit cards, the maximum margin of sampling error is ±4 percentage points.
In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
Thinking about all credit cards including department stores, retail chain stores as well as general bank credit cards such as Visa and MasterCard, how many credit cards do you have?
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|
|
|
|
|
|
Mean (with zero) |
Median (with zero) |
Mean (w/o zero) |
Median (w/o zero) |
|
|
2002 Apr. 8-11 |
17% |
35 |
23 |
12 |
11 |
2 |
3.3 |
2 |
4.0 |
3 |
|
2001 Apr. 6-8 |
22% |
33 |
23 |
11 |
9 |
2 |
3.1 |
2 |
4.0 |
3 |
How do you generally pay your credit card(s) each month -- [RANDOM ORDER: do you always pay the full amount, do you usually pay the full amount, but not always, do you always pay as much as you can, but usually leave balances, do you usually pay the minimum amount due, but not much more, (or) do you sometimes pay less than the minimum amount due]?
based on --856-- with at least one credit card
|
|
|
Always pay as much |
|
|
|
|
|
|
2002 Apr. 8-11 |
41% |
14 |
28 |
13 |
2 |
1 |
1 |
|
2001 Apr. 6-8 |
42% |
16 |
29 |
11 |
1 |
1 |
* |
* Less than 0.5%
