Will there soon be more credit cards than people in the UK?

Credit cards have become an essential part of modern life in the UK, enabling individuals to manage their finances effectively and conveniently whilst sometimes benefitting from a number of perks including accumulating points and airmiles or by getting cashback on purchases such as from Barclaycard or American Express. According to recent data, there are over 60 million credit cards in circulation in the UK, with the average adult owning two credit cards. This article explores the number of people who have credit cards in the UK and the trends that have shaped credit card usage over the years.

Credit card usage in the UK has been on the rise in recent years. According to the latest data from the Bank of England, there were over 60 million credit cards in circulation in the UK as of March 2021. This represents an increase of 3.1% from the previous year. Furthermore, the total value of credit card transactions in the UK reached £180.2 billion in 2020, with an average transaction value of £51.

The number of people who have credit cards in the UK has also been increasing steadily. According to a survey conducted by the UK Cards Association, over 80% of adults in the UK had at least one credit card in 2018. This represents a significant increase from 2006 when only 55% of adults had a credit card.

The increasing popularity of credit cards can be attributed to various factors. One of the main reasons is the convenience they offer. Credit cards allow individuals to make purchases without having to carry cash, making it easier to shop online or make payments when traveling. Moreover, credit cards also offer various rewards and cashback programs, making them an attractive option for many people.

Another factor contributing to the growth of credit card usage is the availability of credit. With interest rates remaining low, credit card providers have been more willing to extend credit to consumers, making it easier for people to access credit. Furthermore, credit card companies have been offering competitive interest rates and balance transfer deals, making it easier for individuals to manage their finances and consolidate their debts.

Credit cards continue to be a popular financial product in the UK. One of the reasons for this is the security they offer. Credit cards come with various security features, such as fraud protection, making them a safer option than carrying cash. Furthermore, credit cards also offer protection against faulty goods or services, providing consumers with additional peace of mind.

In conclusion, the number of people who have credit cards in the UK has been increasing steadily over the years, with over 60 million credit cards in circulation as of March 2021. The convenience, rewards, and availability of credit have all contributed to the popularity of credit cards in the UK. It is also very important for individuals to manage their finances effectively and use credit cards responsibly to avoid falling into debt.