Higher Credit Card Usage Expected Among U.S. Shoppers this Holiday Shopping Season

Rhea-AI Summary

TransUnion (NYSE: TRU) released its Q4 2025 Consumer Pulse study (survey of 3,000 U.S. adults, Oct 1-14, 2025) showing higher expected credit card use and steady holiday spending. 42% of shoppers prefer credit cards this season, up from 38% a year ago; 41% plan online shopping between Thanksgiving and Cyber Monday. 58% expect to spend more than $250 (vs. 56% in 2024) and 31% expect to spend over $500 (vs. 28%).

Household optimism is 55% (down from 58%), inflation is the top worry at 81%, and 30% plan to apply for new credit in the next year (55% of those for a new credit card). TransUnion also launched Credit Essentials, a free daily credit-monitoring and personalized-offer service.

Positive

• Preferred credit card use 42% (up from 38%)
• 58% plan to spend over $250 this season (vs 56% in 2024)
• 30% plan to apply for new credit within 12 months; 55% of them for cards
• Launched Credit Essentials with daily scores and personalized offers

Negative

• Household optimism declined to 55% from 58% year-over-year
• Inflation is a top concern for 81% of consumers
• 86% express concern about tariffs; 34% are very concerned

• TransUnion Consumer Pulse study explores latest household income trends 
• Free Credit Essentials offering can benefit consumers looking to monitor credit and receive credit offers during the holidays

CHICAGO, Nov. 20, 2025 (GLOBE NEWSWIRE) -- Holiday shoppers report that they are expecting to rely more heavily on credit cards this season, with 42% naming it their preferred payment method—up from 38% last year. According to TransUnion’s (NYSE: TRU) Q4 2025 U.S. Consumer Pulse study, Americans remain most interested in shopping during the Thanksgiving holiday period. Specifically, 41% plan to shop online between Thanksgiving and Cyber Monday, while 33% intend to shop in person during that weekend.

The newest Consumer Pulse study is based on a survey of 3,000 U.S. consumers 18 years of age and older between October 1-14, 2025. Approximately 57% of Americans expect to spend the same or more this year compared to last year – the same percentage reported for the 2024 holiday season. Nearly six in 10 U.S. consumers (58%) expect to spend over $250 – an increase from 56% last year.

Most Generations Expect to Spend More This Holiday Shopping Season

How much do you plan on spending this holiday shopping season?	Overall		Gen Z		Millennials		Gen X		Baby Boomers
Comparing 2025 and 2024	‘25	‘24	‘25	‘24	‘25	‘24	‘25	‘24	‘25	‘24
More than $250	58%	56%	46%	42%	64%	65%	63%	55%	54%	56%
More than $500	31%	28%	20%	16%	34%	33%	33%	29%	30%	30%

“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 vice president 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.”

Optimism Still Range Bound, Though Lower

The Consumer Pulse study found that the majority of Americans – 55% – 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. While overall optimism is down from 58% at the same time last year, it has remained relatively stable – ranging between 54% and 58% since Q1 2023, with a single peak of 60% in Q3 2024. Since the study began tracking optimism and pessimism in 2021, the highest levels of optimism were recorded in the post-pandemic period of 2021, when they ranged from 62% to 64%.

Inflation remains by far the top financial worry for consumers, with 81% citing it as one of the top three concerns affecting their household finances over the next six months – 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%).

While 48% of Americans expect their income to increase in the next 12 months, this represents a notable decline from 53% who expressed the same optimism in Q4 last year. One likely factor behind this drop is concern over potential trade tariffs: 86% of respondents reported at least some level of concern over the impact of tariffs, with 34% saying they are very concerned.

“We continue to see a resilient consumer, even as optimism has declined from its peak in recent years. 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,” added Wise.

Consumer Can Benefit from Monitoring Credit Prior to Opening a Credit Card

In addition to the expected rise in credit card usage this holiday season, the Consumer Pulse study 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.

Before opening a new credit card, it is critical for consumers to understand their credit standing to ensure they can secure the best credit offers. To support this need, TransUnion launched Credit Essentials earlier this summer—a new direct-to-consumer experience offering free credit management tools. U.S. consumers can now access their credit reports and scores daily, as well as personalized credit offers, credit education materials and more, at no cost.

With Credit Essentials, consumers receive alerts about significant changes to their TransUnion credit report – such as late payments, new accounts, or hard inquiries – as well as notifications about shifts in their credit score. The platform also empowers consumers with greater borrowing confidence by providing tailored credit product recommendations based on their individual credit profiles. Users can browse and compare personalized credit card offers and explore options for personal loans, mortgages, auto loans, and refinancing – all in one place.

TransUnion’s free offering comes at a time when consumers’ recognition of the need for regular credit monitoring is extremely high. The Consumer Pulse study found that over half of Americans (55%) check their credit report at least monthly, and nearly all (95%) said it’s important to monitor their credit report. While many consumers said they check their credit report because it’s free (47%), other top reasons include protecting against fraud (46%), monitoring their report for accuracy (44%) and improving their credit score (32%).

“Building a foundation of sound financial and credit habits and practicing them consistently are the keys to long-term credit health,” said Margaret Poe, head of consumer credit education at TransUnion. “Consumers who regularly monitor their credit are well on their way to putting themselves in a better position to prepare for today’s credit market.”

For the complete Q4 2025 Consumer Pulse study, please click here. To sign up for Credit Essentials, please click here.   

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business

Contact: Dave Blumberg
Email: david.blumberg@transunion.com
Telephone: 312-972-6646

FAQ

What did TransUnion (TRU) Q4 2025 Consumer Pulse find about holiday payment preferences?

The study found 42% of U.S. shoppers prefer credit cards this season, up from 38% a year earlier.

How much are U.S. consumers planning to spend this holiday season according to TRU Q4 2025?

58% of respondents expect to spend more than $250 and 31% expect to spend over $500.

When was the TransUnion Q4 2025 Consumer Pulse survey conducted and what was the sample size?

The survey polled 3,000 U.S. adults between Oct 1–14, 2025.

What is TransUnion Credit Essentials and how can it help consumers?

Credit Essentials is a free service providing daily credit reports and scores, alerts, and personalized credit offers.

What consumer worries did TRU identify in Q4 2025 that could affect spending?

Top worries were inflation (81%), recession risk (52%), and housing prices (43%); tariffs concerned 86% of respondents.