Credit Card Consumers Well Positioned Before COVID-19

Before the COVID-19 pandemic hit, consumers were luckily in a good place, generally, in terms of paying their balances and making overall payments, according to the American Bankers Association.

During last year’s fourth quarter, for example, a record number of consumers had paid off their balances, according to the ABA’s Credit Card Monitor, hitting an all-time high of 31.9 percent of card users.

Usage of cards of was up across all risk tiers, says the ABA, from 2.9 percent, to 5.8 percent.

“While the COVID-19 pandemic has changed the underlying economic conditions and increased uncertainty, greater access to short-term financing provided by credit cards an help some consumers who face temporary income disruptions,” said ABA Senior Economist Rob Strand.

Read the full ABA report here.