Many parents fear the combination of college students and credit cards, but do college students actually use credit recklessly? The following statistics shed light on this issue, including average student credit card balances, payment habits, credit usage by grade level, and comparisons between credit and debit card usage. Understanding student credit card usage is crucial, as using a credit card is the most efficient way for young individuals to build their credit history and boost their credit score. Good credit plays a vital role in the "real world," impacting loan eligibility, apartment rentals, car leases, and job prospects.
Key Stats for Q4 2023
- Mean credit card balance for college students: $1,962
- Median credit card balance for college students: $828
- Percentage of students with credit cards: 85.21%
Average Credit Card Balance for College Students
The average credit card balance among college students is $1,962, based on WalletHub data as of Q4 2023 and excluding $0 balances. However, with the high proportion of low balances, the median balance is just $828.
(Note: Data presented has $0 balances excluded.)
(Source: WalletHub)
Student Credit Card Debt Distribution
(Source: Data collected from WalletHub users who are students in the fourth quarter of 2023)
Student Credit Card Card Limit Distribution
(Source: Data collected from WalletHub users who are students in the fourth quarter of 2023)
Student Credit Card Payment Statistics
- The percentage of students who pay their credit card bills in full monthly has declined by 12.50% since 2018.
(Source: Sallie Mae, Majoring in Money)
Students Credit Card Purchases by Category
- Students credit card usage has increased by 3% overall.
(Source: Sallie Mae, Majoring in Money)
How Many College Students Have Credit Cards?
85% of students have a credit card, according to WalletHub data for Q4 2023.
(Source: Sallie Mae, Majoring in Money)
- The ownership of credit cards by students differs according to region, students living in the West are more likely to have credit cards (37%) than the students from Midwest (30%) or Northeast and South (26% and 27%, respectively).
- In terms of the ownership of credit cards based on race, White students (33%) are more likely to have credit cards compared to only Hispanic (22%) and African-American (24%) students.
- The income level do not seems to influence the ownership of credit cards among students: thus 34% of high income students, 28% of middle-income students and 32% of low income students have credit cards.
(Source: Sallie Mae, Majoring in Money)
Student Credit Card vs. Debit Card Ownership
- The number of students with at least one credit card has increased by 90% between 2013 and 2020.
- Debit cards remain the most popular choice in the case of American students with an average of 85% students owning at least one debit card, while 57% students owning at least one credit card.
(Source: Sallie Mae, How America Pays For College, Majoring in Money)
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