Infographic: Store card applications surge around the holidays
Data whiz and visual storyteller
When do we shop at retail stores most? November and December.
When do we apply for retail store credit cards? Not surprisingly, the same two months.
TransUnion, one of the major credit reporting bureaus, tracked the number of private label credit cards opened per month for the past three years and the data are consistent: New accounts spike by about 50 percent during the November-December holiday shopping season.
Private label cards are those offered by a specific retailer for use with that retailer only. Think department stores such as Macy’s and Kohls, retail apparel brands such as American Eagle, superstores such as Target and Walmart, online powerhouses such as Amazon, and gas stations such as BP. All issue their own private label cards, as do dozens of other retailers and brands.
Because many store cards push special sign-up promotions as the end of the year approaches, such as an attractive discount at checkout on the day you apply for the card, they can be especially appealing during the budget-taxing holiday shopping season.
From January through October of 2016, the number of store cards opened per month averaged 1.03 million cards. That includes a low outlier of fewer than 500,000 in September. After rebounding to about the monthly average in October, the number of cards opened in November and December each hit new highs for the year.
The combined November-December average was 1.53 million new cards a month, or 48 percent higher than the January-October mean. Isolating December’s monthly total highlights an even more dramatic rise: At almost 1.7 million new cards, December 2016 saw about 63 percent more new cards than the typical month.
TransUnion releases its Industry Insights Report every quarter to provide its latest analysis of the current consumer credit market and its historical trends.
To use the graphic on your site, use the following code:
- Financial setbacks common, and we expect to pay with credit – Poll shows that people are more likely to reach for credit cards than savings if emergency hits ...
- Infographic: Gen X most anxious about retirement – Americans age 37-51 have the least confidence they will have enough money to last their lifetimes ...
- Fed data: We're using credit cards for smaller purchases – We pull out the credit card more often, and the average dollar amount per credit card transaction is shrinking ...