A new consumer report from PYMNTS Intelligence and Elan finds one in three consumers opened a new credit card in the past 12 months, with most choosing a general-purpose option over co-branded options. Although financial stability influences credit card choice, consumer spending remains consistent regardless of income level and motivation for seeking a new card.
As you refine your credit card strategy for 2025 and beyond, consider these actionable insights.
1. Align Your Marketing
Understanding which consumers are drawn to which cards can help financial institutions hone their marketing. New card users overwhelmingly prefer general-purpose cards to co-branded cards, at 86% and 31%, respectively, while repeat card users showed more balanced interest between general-purpose cards and co-branded cards, at 62% and 55%, respectively.
Financial institutions that align their marketing with these preferences might be able to capture and retain greater shares of these segments.
2. Offer Tailored Products
Consumers with financial struggles — 33% of whom prioritize credit building — benefit most from general-purpose cards designed with accessible terms and lower fees.
Issuers should offer products tailored to these consumers by including features that facilitate credit improvement. Offering tools for tracking progress and providing educational resources can empower these individuals to build or rebuild their credit responsibly and gain financial stability.
3. Invest In Referrals
Of consumers who received credit card recommendations, 73% shared they were highly influential, underscoring the importance of word-of-mouth marketing to issuers.
By investing in referral programs that reward both current cardholders and new card users, issuers could leverage the power of recommendations. Strengthening online visibility and promoting these programs through social media could expand their reach and increase card adoption.
4. Encourage Frequent Use
Since 58% of new cardholders plan to actively use their cards as their primary credit card or for specific purchases, issuers should focus on keeping their cards top-of-wallet.
Offering cash back for groceries, recurring payments, and essential purchases encourages frequent use. Aligning rewards with popular spending categories increases the possibility that the card becomes the top choice for everyday transactions.
Explore data, comprehensive analysis, and more findings in the full report and learn how your credit union can offer the best credit card program for your members.
