Credit Card Confidence Increased in April

It seems as though a greater number of Americans were prepared to pay off their credit cards last month than they have been at any other point so far this year. The latest update to LendingTree’s monthly index shows credit card confidence once gain on the rise. During the month, 71% of those surveyed stated that they would definitely be able to pay off their credit card balance in full. This was not only up five points from March and seven points year over year, but also represents the third-highest confidence level ever recorded by the index, topped only by September and October of last year when the percentage reached 73 and 74 respectively. Meanwhile, only 15% said they were totally not confident about paying off their monthly balance in April. That ties a record low last seen in December of 2020.

Interestingly, while there’s still a gender gap in the index, as men are more likely to express credit card confidence than women, that gap shrunk in April. In fact, with 68% of women surveyed stating that they were totally confident in paying off their balance, the month marked a record high. What’s more, the figure represents a seven point increase from the month prior and a significant 11 point jump from this time last year. The seven-point differential (with 75% of men stating confidence) was also the smallest gap observed by the index.

While these latest figures may feel like a bit of deja vu following new highs last year that gave way to a drop off, LendingTree Chief Credit Analyst Matt Schulz suggests we’re unlikely to see a repeat of that. Schultz explained, “There’s no reason to expect cardholder confidence to fall sharply anytime soon. As the economy generally improves, there’s likely to be a sense of relief for many people just to be able to spend again like they did before the pandemic took hold.”

To Schultz’s point, long-term confidence was also on the rise. Of those surveyed, 44% said they expected to pay off their full credit card balance each and every month for at least the next six months. This also marks a record for the index and was up three points from the month prior.

Overall, April’s installment of LendingTree’s Credit Card Confidence Index shows a lot of hope as Americans look to overcome the financial effects of the pandemic. Even as questions arise about the larger economic recovery following last week’s weak jobs report, this survey would suggest that many consumers are getting a handle on their personal finances. Hopefully this is a trend that continues and brings this confidence index even higher.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Nitra Latest FinTech to Join Visa's Fast Track Program

A spending insights platform built for healthcare professionals is getting a big boost by joining up with a major card company. This week, Nitra announced that it was the latest startup to join Visa's Fast Track program. As a result, the company will now have access to Visa's global payment network, VisaNet Nitra is a FinTech offering spending management tools for private practice physicians. With the platform, clients can issue...

Stripe Raises $6.5 Billion, Now Valued at $50 Billion 

FinTech giant Stripe has just closed a massive funding round, but is once again cutting its valuation. The online payments company has announced that it's just raised $6.5 billion. The Series I included participation from returning investors Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital, while new investors GIC, Goldman Sachs Asset and Wealth Management, and Temasek also joined. Goldman Sachs served as sole placement...

Chase Reveals Q2 2023 5% Bonus Categories for Freedom Cards

One of the biggest perks of the popular Chase Freedom Flex card (and its predecessor the Chase Freedom card) is the ability to earn 5% cashback on categories that rotate each quarter. Currently, these categories include grocery stores, fitness clubs and gym memberships, and purchases at Target. Now, with the first quarter of the year drawing to an end, Chase has revealed its Q2 2023 bonus categories. From April 1st...