That’s how much of their credit limit the average credit cardholder actually used in 2020—the smallest share in at least 10 years, according to the credit bureau Experian.
The so-called credit utilization ratio—the second most important factor in credit score calculations behind payment history—fell from 29% in 2019, Experian said in a recent report. The decline was driven by a 14% drop in the average credit card balance, to $5,315.
In a surprising silver lining of the pandemic economy, card card debt is shrinking, likely because consumers have pared spending and benefited from government relief. Overall debt dropped 9% to $756 billion, marking the first decline for any kind of consumer debt since 2013, Experian said.