As we approach 2025, several credit card trends are emerging that could impact consumers
Interest rates dipped a bit, but credit card APRs took their sweet time catching up. The Federal Reserve lowered rates three times, but it took a while for credit card rates to follow.
Debt levels crept up, but they’re stabilizing. NerdWallet’s study showed a 1.5% increase in revolving credit card debt from September 2023 to September 2024, a big drop from the previous year’s 15% jump. Delinquency rates have been rising since 2021 but leveled off a bit in late 2024.
Some industry changes hit a wall. The Credit Card Competition Act, which aims to lower swipe fees for merchants, is still being debated. Critics say any savings might not reach shoppers and could hurt rewards programs. Meanwhile, the Consumer Financial Protection Bureau (CFPB) tried to cap late fees, but a judge blocked that effort.
Now, as we look ahead to 2025, a new presidential administration is coming in. The second Trump administration could shake things up. Decisions made in D.C. can impact banks and consumers alike.
The CFPB’s future is uncertain, especially with the new Department of Government Efficiency aiming to cut what they see as wasteful spending. Elon Musk has even suggested getting rid of the CFPB, which was set up to protect consumers.
But the CFPB has been busy lately, issuing rules to protect consumers from misleading credit card practices and eliminating medical debt from credit reports.
Potential deregulation in banking could make credit easier to access but might also take away some consumer protections.
As for spending habits, it seems we’re finding a balance post-pandemic. After a period of splurging, experts predict stability in credit card balances and delinquency rates in 2025.
Capital One is making waves by planning to acquire Discover, which would make it the largest credit card issuer. This could lead to lower fees for merchants, but there’s no guarantee it’ll mean lower prices for consumers.
AI is also stepping into the credit card world, helping companies evaluate applications faster and prevent fraud. Expect apps to get smarter, making it easier to solve issues without waiting on hold.
And let’s not forget about rewards. With costs rising, consumers are looking for deals, and credit card rewards are a popular way to save. The focus is shifting from just points to experiences and shopping deals.
Travel rewards are still a big deal, but experts suggest not holding onto those miles for too long since they don’t earn interest.
Overall, 2025 looks like it’ll be an interesting year for credit cards, with changes that could affect how we spend and save.
