For many consumers, credit cards (not checking or savings accounts) are now the core of their relationship with their bank or credit union. In fact, almost two-thirds of consumers do no other business with their credit card issuers. In 2025, banks and credit unions need to work harder to make the credit card the beginning of the customers’ journey, not the end.
By Corey Wrinn, Rivel Banking Research
Published on January 14th, 2025 in Credit & Debit Cards
2025 is shaping up to be a landmark year for credit cards, driven by shifting consumer preferences and evolving business needs. Recent Federal Reserve data shows credit card applications hitting their highest levels since pre-pandemic times, with approval rates climbing steadily. Major issuers like Chase and American Express reported record-high application volumes in Q4 2024, indicating sustained momentum into 2025.
Rivel’s new research digs deeper into the reasons why credit cards are in demand right now and how financial institutions can advocate for new businesses to the right audiences.
Opportunities for Growth
Within the last year, 43% of US consumers have opened a new credit card account – the highest among Gen Z (68%) and Millennials (35%). With elevated prices, more households are turning to credit cards for everyday purchases and large expenses. It continues to be highly sought after for businesses as it becomes a more familiar format for vendor payments and cash flow management.
In Rivel’s semi-annual research of banking consumers, the credit card has been the most in-demand banking product across both retail and commercial for the last two years. For consumers, its demand is higher than checking accounts, savings accounts, and loan products, including mortgages and auto loans. For businesses, credit cards are outpacing credit lines, checking accounts, and treasury management in demand.
Looking to the future, the opportunity on the retail side lies with younger consumers who have not yet fully established their credit or spending habits and slightly older consumers who need access to credit today.
Consumers seeking a new credit card in 2025 who currently only have one credit card
Consumers seeking a new credit card in 2025 who currently only have one credit card
| Seeking a new credit card this year | Currently only has one card | |
|---|---|---|
| Gen Z | 44% | 55% |
| Millennials | 35% | 38% |
| Gen X | 22% | 27% |
| Baby Boomers | 12% | 22% |
Over half of consumers (52%) pay off their credit card balances in full each month, leaving a significant portion carrying debt. The rise of buy-now-pay-later services like Affirm and Klarna has fundamentally shifted how younger consumers view credit-based purchases, making installment payments feel more accessible and less daunting. This shift is particularly pronounced among Gen Z consumers, pushing the boundaries of credit utilization. More than half now use between 20 to 60% of their available credit monthly, a notably higher rate than other generations.
Getting to Why
Understanding Gen Z’s credit motivations is crucial, as they currently show the highest credit utilization rates and the strongest appetite for new financial products. Their primary incentives for opening new credit cards reveal clear priorities — 68% aim to build a credit history, 31% seek to increase their credit limits, and 24% are attracted by better reward programs.
Notably, traditional assumptions about credit card adoption don’t hold true. Factors like upcoming large purchases, diverse card benefits or dissatisfaction with existing cards play minimal roles in consumers’ decisions to open new accounts. An interesting pattern emerges in rewards preferences, as well — while older, established consumers prioritize maximizing reward benefits, younger consumers focus primarily on building credit access and achieving financial stability.
Getting to Why
Understanding Gen Z’s credit motivations is crucial, as they currently show the highest credit utilization rates and the strongest appetite for new financial products. Their primary incentives for opening new credit cards reveal clear priorities — 68% aim to build a credit history, 31% seek to increase their credit limits, and 24% are attracted by better reward programs.
Notably, traditional assumptions about credit card adoption don’t hold true. Factors like upcoming large purchases, diverse card benefits or dissatisfaction with existing cards play minimal roles in consumers’ decisions to open new accounts. An interesting pattern emerges in rewards preferences, as well — while older, established consumers prioritize maximizing reward benefits, younger consumers focus primarily on building credit access and achieving financial stability.
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