Survey: Credit card usage to rise this holiday season
Higher prices are pushing more consumers to rely on credit cards for holiday shopping this year.
That’s according to credit bureau TransUnion’s latest Q4 2025 U.S. Consumer Pulse study, which found that more than four-in-10 (42%) consumers note credit cards as their preferred payment method for buying gifts this season. This is an increase from 38% last year.
Americans remain most interested in shopping during the Thanksgiving holiday period, with 41% planning to shop online between Thanksgiving and Cyber Monday. A third (33%) of those surveyed intend to shop in person during the weekend.
Nearly six-in-10 (57%) consumers expect to spend the same or more this year compared to last year, which TransUnion noted is the same percentage reported for the 2024 holiday season. Nearly six-in-10 (58%) consumers expect to spend over $250 – an increase from 56% last year.
[READ MORE: ICSC: Shoppers to spend average of $542 over Thanksgiving weekend]
TransUnion found that 30% of consumers plan to apply for new credit or refinance existing credit within the next year. Among them, 55% intend to apply for a new credit card.
“As the holiday shopping season kicks off in earnest next weekend, our latest Consumer Pulse study suggests we may see increased spending this year,” said Charlie Wise, senior VP and head of global research and consulting at TransUnion. “It’s clear that credit cards will be the preferred payment method for many consumers. That’s not surprising, given that nearly 175 million Americans now hold one or more active credit cards and we continue to see steady growth in both cardholders and the number of open credit cards – an indication of strong consumer demand for credit and confidence from issuers in consumers’ ability to manage their payments.”
Despite a most expensive holiday season, a majority (55%) of Americans are optimistic about their household finances over the next 12 months. Optimism is highest among younger generations, with 65% of millennials and 63% of Gen Z expressing a positive outlook.
Inflation remains by far the top financial worry for consumers, with a large majority (81%) citing it as one of the top three concerns affecting their household finances over the next six months, which is comparable to the 80% reading in Q4 2024. Recession is the second most common concern (52% ranking it in their top three), followed by housing prices (43%).
“We continue to see a resilient consumer, even as optimism has declined from its peak in recent years.” added Wise. “Uncertainty around tariffs and the timing of our research – conducted at the onset of the federal government shutdown – may be contributing factors. These concerns could also help explain consumers’ anticipated rise in credit card usage this holiday season.”
TransUnion’s new Consumer Pulse study is based on a survey of 3,000 U.S. consumers 18 years of age and older fielded between Oct. 1-14, 2025.
