Australian credit card and debit card statistics 2020
Discover exactly how the average Australian uses their credit card with our comprehensive guide to credit card statistics.
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There are 13,668,490 credit cards in Australia as of November 2020, netting a national debt accruing interest of $20.9 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?
How many people have a credit card?
Number of credit cards in circulation – 13,720,907
Number of debit cards in circulation – 34,861,747
Could these Australians manage their finances without a credit card?
- Yes – 72%
- No – 28%
How many people have been rejected?
While 12.6 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 (36%) is the top culprit, followed by having too much debt (22%) and having a bad credit score (21%).
Have you ever been rejected for the following?
- Credit card – 8%
- Personal loan – 6%
- Home loan – 4%
- Car loan – 3%
- Business loan – 3%
- None of the above – 83%
Australian credit and debit card statistics
Why do Australians take out a credit card?
Emergencies, rewards and big-ticket items among top reasons for taking out a credit card. What are the top reasons you got your most recent credit card?
- For emergencies – 41%
- Rewards/frequent flyer points – 38%
- Make a big purchase – 21%
- Establish my credit – 18%
- Pay off debt/do a balance transfer – 11%
- Manage a drop in income – 8%
According to the Reserve Bank of Australia, the average standard credit card rate is 19.94%.
|Year||Standard credit card rate||Cash rate|
Comparing how we use credit cards and debit cards
According to Finder's latest Consumer Sentiment Tracker data, 68% of Australians say they have a credit card, with younger generations slightly more likely to have additional cards.
How much do Australians put on plastic?
- Average credit card purchase – $101
- Average debit card purchase – $47
- Average credit card balance – $2,728
- Average balance accruing interest – $1,501
And how long does it take to pay off this debt?
- 6.5 months on average
- Female – 6.9 months
- Male – 6.2 months
- Baby boomers – 5.6 months
- Gen X – 7.8 months
- Gen Y – 6.7 months
- Gen Z – 4.9 months
Where do they turn if they can't pay it off?
Worryingly, only half of Aussies who find themselves buried under out-of-control credit card debt would be able to dig themselves out.
If you were unable to meet a repayment on your credit card where would you turn first?
- Emergency savings – 52%
- Ask family/friends for help – 18%
- I would call my bank/provider/issuer for help – 18%
- I would miss the payment – 5%
- Other – 4%
- Take out a small personal loan to cover it – 3%
Unfortunately, some have missed the due date and faced a late fee…
Have you ever paid a late fee on your credit card?
- Yes – 64%
- No – 25%
- I don't know – 11%
So how can Australians stay on top of their credit card debt?
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
- "The best way to stay on top of your credit card debt is to only spend within your means. 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 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 two very different types of credit cards on the market in Australia - cards with low interest, and 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."
How has the way Australians use credit cards changed over the years?
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.
|Year||Average number of accounts||Total purchases||Total purchase spend||Average balance per card||Average balance costing interest per card|
Are you a journalist or researcher? If you need any further data or custom research, please contact Graham Cooke.
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