How Generational Use is Reshaping Consumer Credit

By Roy Urrico

Finopotamus aims to highlight white papers, surveys, blogs and reports that provide a glimpse as to what is taking place and/or impacting credit unions and other organizations in the financial services industry.

Gen Z, millennials, and multicard holders are reshaping credit card usage, and what that means for issuers, according to Consumer Credit – Top-of-Wallet Credit Products, a report from Redwood City, Calif.-based banking and payment solutions provider i2c Inc. The company collected 4,088 responses in a survey conducted from Mar. 4 to Mar. 31, 2025.

Seth Perlman, global head of product at i2c.

Gen Z, millennials, and multicard holders are reshaping credit card usage. What that means for issuers is addressed in Consumer Credit – Top-of-Wallet Credit Products, a report from Redwood City, Calif.-based banking and payment solutions provider i2c Inc. The company collected 4,088 responses in a survey conducted from Mar. 4 to Mar. 31, 2025.

There are opportunities, the report found, for credit unions as well. “Credit unions have a unique opportunity right now to strengthen their role as the primary financial partner for younger members. Our research shows that millennials and Gen Z are using 25-28% of their available credit each month—much higher than older generations—despite often holding just one or two cards,” Seth Perlman, global head of product at i2c, told Finopotamus. “These members aren’t just looking for rewards. They are looking for flexibility, control, and digital experiences that reflect how they choose to manage their money.”

Breaking Down the Report Findings

Millennials and Gen Z are using 25-28% of their available credit each month.

• Baby boomers and Gen X spread spending across three or more cards, using only 16-19% of their primary card’s limit.

• Consumers with three or more credit cards use their primary card more frequently than those with fewer, with 46% swiping multiple times a week.

• Nearly half of Gen Z cardholders say they would use their main card more often if given custom payment features, like installment options or real-time fund source selection.

Younger consumers, despite having fewer cards, still have high credit needs. 

• Consumers across income brackets use consistent percentages of their available credit, all around the recommended 20%. Higher income users with more access do make use of higher credit lines.

• Younger consumers have a greater need for credit, with millennials and Gen Z using nearly 30% of their ending capacity. The dollar amount of consumption varies, though, with millennials spending over $550 more on credit compared to the youngest consumers.

• Younger consumers have fewer cards but rely more heavily on them, creating both greater risk and opportunity for card issuers targeting this demographic. These consumers represent higher engagement potential but also require thoughtful credit limit management strategies.

Purpose-Driven Card Selection

• While reward programs dominate overall card acquisition, the top priority shifts significantly based on how a consumer intends to use a given card. Emergency cards prioritize interest rates, bill payment cards value security features, and everyday purchase cards maximize reward potential.

• Nearly 50% of cardholders cited rewards or discounts as a reason for getting their primary card, and 31% said it was the most important reason. There is dramatic drop-off to the next important reason for getting one’s primary card, with 13% citing the need to build financial history as the most important reason. Additionally, there is variation in what different consumer groups believe is most important. For example, while only 6% of all consumers cite data security as the most influential factor, it is the most important thing for 15% of Gen Z cardholders, showing that younger digital natives are aware of and care about the security of their information.

The Top Card Advantage

• Despite multiple payment options, consumers with three or more cards use their primary card more frequently compared to those with fewer cards. This highlights the strategic importance of securing top-of-wallet position.

• Consumers would significantly increase their primary card usage if offered more payment control options and higher credit limits.

The Flexibility Factor.

• Younger consumers especially would significantly increase their primary card usage if offered more payment control options and higher credit limits.

• When it comes to paying bills and buying online, higher credit limits would get younger consumers (40% of millennials and 36% of Gen Z) using their primary card more often. Almost half of Gen Z would use their primary card more if given more control over how they pay.

Credit Union Opportunity

“By delivering personalized credit features—like installment payments, real-time account controls, and access to digital wallets—credit unions can deepen engagement and loyalty, Perlman explained to Finopotamus.

He continued, “These aren’t just nice-to-haves anymore; they’re table stakes. The credit card is still one of the most frequently used financial products, and credit unions are well positioned to compete if they can meet the expectations of younger users.”