Number of the Day Shows Credit Card Discipline

25% - 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 Balance

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.