Australian credit card accounts grew by over 356,000 since April 2022, spurred by rising living costs.
A record 88% of credit card balances were paid off in November 2023, indicating strong debt management.
Renters experience higher financial strain; 39% rely on cards and 24% missed repayments.
Finder's Credit Card Report combines aggregate credit card data from the Reserve Bank of Australia (RBA) with Finder's Consumer Sentiment Tracker (CST) to better understand the challenges influencing Australian cardholder behaviour and attitudes.
Key statistics
Australians have opened over 356,000 new credit card accounts.
A record 88% of the balance across all credit cards was paid off in November 2023.
14% of Australians don't know the risk of BNPL compared to 9% who do not understand the risks associated with credit cards.
The resurgence
The Australian credit card market is undergoing a revival. After a significant downturn between May 2017 and April 2022 – during which 3.6 million cards were removed from circulation – cost of living pressures have compelled Australians to reconsider their financial strategies.
Following 31 months of a below -1% cash rate, the RBA lifted its target 12 times between May 2022 and June 2023, increasing pressure on household budgets. Around the same time, the number of credit card accounts in Australia started to increase.
Since April 2022 Australians have opened over 356,000 new credit card accounts. In January 2024, Australia's credit card spending hit an all-time high of $35.3b. These changes correlate directly with the increasing cash rate and indicate that credit cards are becoming a vital component of financial management for many Australians trying to cope with rising living costs. From everyday groceries to mortgage repayments, they offer a flexible means to navigate tough financial periods.
This report will examine the factors driving the surge, the impact changing consumer behaviour is having on the credit card industry, and the future of the credit card market.
Why are Australians picking up plastic?
The proportion of Australians reporting extreme stress regarding their financial circumstances reached a peak of 31% in July 2023, up from 18% 2 years prior.
At the same time, dependence on credit cards has risen. In May 2021, only 18% of individuals felt they couldn't manage their finances without a credit card. By June 2023 this had jumped to 30%.
Inflationary pressures have pushed spending 11% above where it would have been if the trends evident for the preceding 3 years had continued.
Percentage of Australians card holders who could not manage their finances without a credit card
Percentage of Australians card holders who could not manage their finances without a credit card
Month
No
May-19
31
Jun-19
26
Jul-19
27
Aug-19
28
Sep-19
31
Oct-19
28
Nov-19
29
Dec-19
30
Jan-20
24
Feb-20
30
Mar-20
30
Apr-20
29
May-20
31
Jun-20
27
Jul-20
26
Aug-20
24
Sep-20
23
Oct-20
26
Nov-20
26
Dec-20
23
Jan-21
22
Feb-21
21
Mar-21
20
Apr-21
21
May-21
18
Jun-21
24
Jul-21
24
Aug-21
22
Sep-21
26
Oct-21
22
Nov-21
22
Dec-21
24
Jan-22
24
Feb-22
27
Mar-22
24
Apr-22
26
May-22
24
Jun-22
23
Jul-22
23
Aug-22
26
Sep-22
23
Oct-22
24
Nov-22
25
Dec-22
27
Jan-23
25
Feb-23
27
Mar-23
27
Apr-23
30
May-23
28
Jun-23
30
Jul-23
28
Aug-23
28
Sep-23
25
Oct-23
27
Nov-23
26
Dec-23
28
Jan-24
28
Feb-24
28
Our expert says
"Credit cards are a notably costly form of borrowing and the shift towards reliance on them, spurred by the cost of living crisis, raises concerns."
Australians are managing their debts remarkably well. A record 88% of September's balance was paid off in November 2023.
These record-low balances have pushed credit card bill stress down from 22% in January 2021 to 11% currently.
This is due to the significant savings buffers built up between 2020 and 2022. Australians were saving $925 a month in March 2021, well above the usual monthly savings of around $650.
Percentage of previous month's balance paid
Percentage of previous month's balance paid
Month -Year
Repayments: % Of Previous Month'S Balance Paid
Jan-1985
Feb-1985
Mar-1985
Apr-1985
May-1985
Jun-1985
Jul-1985
Aug-1985
Sep-1985
Oct-1985
Nov-1985
Dec-1985
Jan-1986
Feb-1986
Mar-1986
Apr-1986
May-1986
Jun-1986
Jul-1986
Aug-1986
Sep-1986
Oct-1986
Nov-1986
Dec-1986
Jan-1987
Feb-1987
Mar-1987
Apr-1987
May-1987
Jun-1987
Jul-1987
Aug-1987
Sep-1987
Oct-1987
Nov-1987
Dec-1987
Jan-1988
Feb-1988
Mar-1988
Apr-1988
May-1988
Jun-1988
Jul-1988
Aug-1988
Sep-1988
Oct-1988
Nov-1988
Dec-1988
Jan-1989
Feb-1989
Mar-1989
Apr-1989
May-1989
Jun-1989
Jul-1989
Aug-1989
Sep-1989
Oct-1989
Nov-1989
Dec-1989
Jan-1990
Feb-1990
Mar-1990
Apr-1990
May-1990
Jun-1990
Jul-1990
Aug-1990
Sep-1990
Oct-1990
Nov-1990
Dec-1990
Jan-1991
Feb-1991
Mar-1991
Apr-1991
May-1991
Jun-1991
Jul-1991
Aug-1991
Sep-1991
Oct-1991
Nov-1991
Dec-1991
Jan-1992
Feb-1992
Mar-1992
Apr-1992
May-1992
Jun-1992
Jul-1992
Aug-1992
Sep-1992
Oct-1992
Nov-1992
Dec-1992
Jan-1993
Feb-1993
Mar-1993
Apr-1993
May-1993
Jun-1993
Jul-1993
Aug-1993
Sep-1993
Oct-1993
Nov-1993
Dec-1993
Jan-1994
Feb-1994
Mar-1994
Apr-1994
May-1994
35%
Jun-1994
36%
Jul-1994
35%
Aug-1994
35%
Sep-1994
36%
Oct-1994
36%
Nov-1994
37%
Dec-1994
37%
Jan-1995
35%
Feb-1995
35%
Mar-1995
35%
Apr-1995
36%
May-1995
36%
Jun-1995
36%
Jul-1995
37%
Aug-1995
36%
Sep-1995
37%
Oct-1995
36%
Nov-1995
36%
Dec-1995
36%
Jan-1996
35%
Feb-1996
35%
Mar-1996
35%
Apr-1996
35%
May-1996
35%
Jun-1996
35%
Jul-1996
35%
Aug-1996
35%
Sep-1996
36%
Oct-1996
36%
Nov-1996
37%
Dec-1996
36%
Jan-1997
35%
Feb-1997
36%
Mar-1997
34%
Apr-1997
39%
May-1997
38%
Jun-1997
38%
Jul-1997
38%
Aug-1997
39%
Sep-1997
40%
Oct-1997
40%
Nov-1997
40%
Dec-1997
41%
Jan-1998
39%
Feb-1998
40%
Mar-1998
40%
Apr-1998
42%
May-1998
43%
Jun-1998
42%
Jul-1998
42%
Aug-1998
43%
Sep-1998
43%
Oct-1998
44%
Nov-1998
44%
Dec-1998
44%
Jan-1999
42%
Feb-1999
44%
Mar-1999
45%
Apr-1999
45%
May-1999
46%
Jun-1999
46%
Jul-1999
46%
Aug-1999
46%
Sep-1999
46%
Oct-1999
47%
Nov-1999
47%
Dec-1999
44%
Jan-2000
45%
Feb-2000
46%
Mar-2000
46%
Apr-2000
47%
May-2000
48%
Jun-2000
49%
Jul-2000
47%
Aug-2000
47%
Sep-2000
47%
Oct-2000
48%
Nov-2000
48%
Dec-2000
46%
Jan-2001
46%
Feb-2001
46%
Mar-2001
47%
Apr-2001
48%
May-2001
47%
Jun-2001
47%
Jul-2001
47%
Aug-2001
47%
Sep-2001
48%
Oct-2001
48%
Nov-2001
48%
Dec-2001
49%
Jan-2002
56%
Feb-2002
49%
Mar-2002
49%
Apr-2002
49%
May-2002
50%
Jun-2002
50%
Jul-2002
49%
Aug-2002
50%
Sep-2002
49%
Oct-2002
50%
Nov-2002
49%
Dec-2002
48%
Jan-2003
47%
Feb-2003
48%
Mar-2003
48%
Apr-2003
48%
May-2003
48%
Jun-2003
48%
Jul-2003
48%
Aug-2003
48%
Sep-2003
48%
Oct-2003
49%
Nov-2003
49%
Dec-2003
48%
Jan-2004
46%
Feb-2004
48%
Mar-2004
47%
Apr-2004
48%
May-2004
48%
Jun-2004
49%
Jul-2004
47%
Aug-2004
47%
Sep-2004
48%
Oct-2004
47%
Nov-2004
47%
Dec-2004
48%
Jan-2005
45%
Feb-2005
48%
Mar-2005
47%
Apr-2005
46%
May-2005
46%
Jun-2005
45%
Jul-2005
45%
Aug-2005
46%
Sep-2005
45%
Oct-2005
46%
Nov-2005
45%
Dec-2005
44%
Jan-2006
44%
Feb-2006
45%
Mar-2006
44%
Apr-2006
44%
May-2006
44%
Jun-2006
44%
Jul-2006
43%
Aug-2006
44%
Sep-2006
43%
Oct-2006
43%
Nov-2006
43%
Dec-2006
43%
Jan-2007
42%
Feb-2007
43%
Mar-2007
43%
Apr-2007
42%
May-2007
43%
Jun-2007
43%
Jul-2007
43%
Aug-2007
43%
Sep-2007
43%
Oct-2007
43%
Nov-2007
43%
Dec-2007
43%
Jan-2008
43%
Feb-2008
43%
Mar-2008
42%
Apr-2008
43%
May-2008
43%
Jun-2008
43%
Jul-2008
43%
Aug-2008
43%
Sep-2008
42%
Oct-2008
43%
Nov-2008
43%
Dec-2008
42%
Jan-2009
42%
Feb-2009
43%
Mar-2009
42%
Apr-2009
44%
May-2009
43%
Jun-2009
42%
Jul-2009
42%
Aug-2009
43%
Sep-2009
43%
Oct-2009
43%
Nov-2009
43%
Dec-2009
43%
Jan-2010
43%
Feb-2010
43%
Mar-2010
43%
Apr-2010
41%
May-2010
43%
Jun-2010
43%
Jul-2010
42%
Aug-2010
43%
Sep-2010
43%
Oct-2010
43%
Nov-2010
43%
Dec-2010
42%
Jan-2011
42%
Feb-2011
43%
Mar-2011
43%
Apr-2011
43%
May-2011
44%
Jun-2011
43%
Jul-2011
43%
Aug-2011
44%
Sep-2011
44%
Oct-2011
44%
Nov-2011
44%
Dec-2011
43%
Jan-2012
43%
Feb-2012
44%
Mar-2012
44%
Apr-2012
44%
May-2012
44%
Jun-2012
45%
Jul-2012
45%
Aug-2012
45%
Sep-2012
45%
Oct-2012
46%
Nov-2012
46%
Dec-2012
45%
Jan-2013
45%
Feb-2013
47%
Mar-2013
46%
Apr-2013
47%
May-2013
46%
Jun-2013
47%
Jul-2013
47%
Aug-2013
47%
Sep-2013
48%
Oct-2013
48%
Nov-2013
48%
Dec-2013
48%
Jan-2014
48%
Feb-2014
49%
Mar-2014
49%
Apr-2014
48%
May-2014
49%
Jun-2014
49%
Jul-2014
49%
Aug-2014
50%
Sep-2014
50%
Oct-2014
50%
Nov-2014
50%
Dec-2014
49%
Jan-2015
49%
Feb-2015
50%
Mar-2015
51%
Apr-2015
50%
May-2015
51%
Jun-2015
51%
Jul-2015
50%
Aug-2015
52%
Sep-2015
52%
Oct-2015
52%
Nov-2015
52%
Dec-2015
51%
Jan-2016
50%
Feb-2016
52%
Mar-2016
50%
Apr-2016
51%
May-2016
51%
Jun-2016
51%
Jul-2016
51%
Aug-2016
52%
Sep-2016
51%
Oct-2016
52%
Nov-2016
53%
Dec-2016
52%
Jan-2017
52%
Feb-2017
53%
Mar-2017
52%
Apr-2017
53%
May-2017
53%
Jun-2017
53%
Jul-2017
53%
Aug-2017
54%
Sep-2017
54%
Oct-2017
54%
Nov-2017
55%
Dec-2017
54%
Jan-2018
54%
Feb-2018
55%
Mar-2018
54%
Apr-2018
54%
May-2018
54%
Jun-2018
54%
Jul-2018
54%
Aug-2018
56%
Sep-2018
56%
Oct-2018
55%
Nov-2018
56%
Dec-2018
55%
Jan-2019
55%
Feb-2019
56%
Mar-2019
55%
Apr-2019
56%
May-2019
56%
Jun-2019
56%
Jul-2019
56%
Aug-2019
58%
Sep-2019
59%
Oct-2019
60%
Nov-2019
60%
Dec-2019
60%
Jan-2020
59%
Feb-2020
62%
Mar-2020
58%
Apr-2020
55%
May-2020
57%
Jun-2020
61%
Jul-2020
63%
Aug-2020
66%
Sep-2020
67%
Oct-2020
67%
Nov-2020
71%
Dec-2020
70%
Jan-2021
70%
Feb-2021
72%
Mar-2021
72%
Apr-2021
72%
May-2021
74%
Jun-2021
73%
Jul-2021
70%
Aug-2021
73%
Sep-2021
74%
Oct-2021
76%
Nov-2021
80%
Dec-2021
76%
Jan-2022
77%
Feb-2022
82%
Mar-2022
79%
Apr-2022
84%
May-2022
84%
Jun-2022
84%
Jul-2022
83%
Aug-2022
86%
Sep-2022
86%
Oct-2022
86%
Nov-2022
86%
Dec-2022
82%
Jan-2023
83%
Feb-2023
87%
Mar-2023
83%
Apr-2023
86%
May-2023
85%
Jun-2023
85%
Jul-2023
85%
Aug-2023
87%
Sep-2023
87%
Oct-2023
86%
Nov-2023
88%
Dec-2023
84%
Our expert says
"While Australians are using credit cards for more purchases than ever, they are also improving at managing their balances, with the total national balance accruing interest at a historic low. "
The average mortgage holder can live off their savings for more than 3 months. This has stayed steady over the last 2 years. Meanwhile, renters have seen their buffers drop by 17% to just above 2 months.
Because of this, a diversion in credit card behaviour between mortgage holders and renters is evident. A record 39% of renters with a credit card rely on it compared to only 29% of mortgage holders with a card.
24% of renters have missed a repayment by 30 days or more, in stark contrast to just 13% of mortgage holders.
Proportion of consumers who rely on credit cards to manage their finances by type of resident
Proportion of consumers who rely on credit cards to manage their finances by type of resident
Month
Outright owners
Mortgage holders
Renters
May 2019
23
41
30
Jun 2019
24
34
28
Jul 2019
22
34
29
Aug 2019
21
31
29
Sep 2019
22
34
30
Oct 2019
24
32
30
Nov 2019
26
31
30
Dec 2019
25
30
31
Jan 2020
25
29
31
Feb 2020
24
30
31
Mar 2020
25
30
31
Apr 2020
28
33
30
May 2020
28
32
30
Jun 2020
26
31
29
Jul 2020
23
30
30
Aug 2020
20
30
26
Sep 2020
19
29
25
Oct 2020
19
29
26
Nov 2020
20
28
26
Dec 2020
20
28
28
Jan 2021
19
26
27
Feb 2021
17
26
26
Mar 2021
17
24
24
Apr 2021
17
24
24
May 2021
15
23
24
Jun 2021
13
26
26
Jul 2021
13
29
26
Aug 2021
16
29
26
Sep 2021
19
27
27
Oct 2021
19
25
26
Nov 2021
19
26
27
Dec 2021
18
27
26
Jan 2022
17
27
29
Feb 2022
19
28
31
Mar 2022
18
29
33
Apr 2022
21
30
29
May 2022
20
28
28
Jun 2022
19
26
27
Jul 2022
18
23
31
Aug 2022
18
25
33
Sep 2022
18
27
29
Oct 2022
18
28
28
Nov 2022
18
28
26
Dec 2022
19
29
31
Jan 2023
19
31
31
Feb 2023
20
30
33
Mar 2023
20
29
31
Apr 2023
21
31
33
May 2023
21
32
36
Jun 2023
22
33
35
Jul 2023
21
33
36
Aug 2023
21
34
34
Sep 2023
19
32
33
Oct 2023
19
31
31
Nov 2023
19
30
31
Dec 2023
18
30
36
Jan 2024
19
29
39
Our expert says
"It seems as though relief may have come at just the right time for these consumers. The first interest rate cuts are expected as early as August with no further rises in sight. However, if the winds change, these cardholders cannot absorb much more financial stress. "
Nearly half of credit cardholders (46%) who collect rewards points struggled to satisfy minimum spend requirements.
Almost 2 in 3 (65%) of those who struggled to satisfy the bonus point requirements said they spent more than usual or went into debt to reach the requirements.
Recent data shows that more than one in two Australians with a credit card (52%) regret a purchase they've made on their card.
Percentage of card holders who collect rewards points and struggled to meet the spending requirements
Percentage of card holders who collect rewards points and struggled to meet the spending requirements
Response
Count
No, I was prepared to meet the requirements before I applied
54
Yes, I had to spend more than usual to get the bonus points
18
Yes, I didn’t meet the requirements
16
Yes, I met the requirements but ended up in debt
12
Credit through the generations
54% of baby boomers believe Buy Now Pay Later (BNPL) is risky compared to 35% of gen X and Y, and 27% of gen Z.
It is understandable, then, that gen Z and Y are more comfortable with BNPL when 20% and 15% of them respectively used BNPL as their first line of credit. This is compared to only 7% of gen X and 2% of baby boomers.
14% of Australians don't know the risk of BNPL compared to 9% who do not understand the risks associated with credit cards.
First credit product used by generation
First credit product used by generation
Credit product
Baby Boomers
Gen X
Gen Y
Gen Z
Buy now pay later (BNPL)
2
7
15
20
Other (please specify)
3
1
0
0
Personal loan
7
8
11
12
Car loan
11
11
6
3
I have not used a credit product before
15
21
27
29
Home loan
18
9
7
7
Credit card (in your name)
44
44
34
29
Our expert says
"As credit cards already have requirements around disclosing rates, fees and other crucial details, the same requirement for BNPL should help consumers make informed decisions around what type of product they choose for payments. "
"Credit cards are a part of the financial landscape in Australia, and the research in this report shows that's not going to change anytime soon. What is changing, for the better, is that more people are managing their credit cards well. The amount of debt accruing interest on credit cards dropped significantly during the pandemic and has stayed below pre-2020 levels.
One outcome of more responsible credit card management is that more people are considering the potential value of rewards and other perks. Younger generations, too, are more open to credit cards now that the shine of BNPL has worn off – influenced by media reports of serious debt and the government's plans to officially regulate it as a credit product.
But there is still a dark side to credit cards. As the cost of living crisis has continued, some people have turned to credit as a way to make costs meet, particularly for essentials, which could lead to more financial stress in the long run."
Joshua Godfrey is a Senior Insights Analyst at Finder, specialising in data analysis and identifying emerging trends through the Consumer Sentiment Tracker, a monthly survey on Australians' financial attitudes. He has authored Finder’s 2024 Wealth Building Report and 2025 First Home Buyer Report which have been widely quoted in top media outlets like the AFR and news.com.au. With a Bachelor of Business in Finance and Marketing and a Diploma of Creative Intelligence from UTS, Josh is passionate about uncovering patterns in consumer sentiment and exploring how they influence the future of finance.
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