NEW YORK— Store credit cards growth could significantly surge this year based on last year’s trends, a new study indicates.
A report by LendingTree revealed that 35% of Americans were likely to apply for a store credit card during the 2022 holiday season, the second-highest percentage in five years of tracking and up from 29% the year before, Pymnts.com reported.
Additionally, TransUnion reported that store credit card originations reached 12.1 million in Q3 2022, up 8.4% compared to the previous year.
Store credit card balances grew by 7.3%, indicating a growing interest in and usage of store credit cards.
“There are barriers to wider adoption, however, including low customer satisfaction—37% of Americans who signed up for a store card later regretting it—and higher annual percentage rates than general-purpose cards,” Pymnts.com stated in its analysis.