Story perspectives

Credit Card Installments Soar 46% Among Young Consumers

11/27/2025

Summary

Story summary

Credit card installment plans surged 46% in the summer of 2025.
One in three consumers used credit card installments, especially for travel expenses, while buy now, pay later (BNPL) use remained stable.
Higher-income individuals showed greater preference for both payment methods.
Younger consumers, especially Gen Z, favored credit card installments for essential and discretionary purchases.
The average spending by users of these options exceeded $1,000.

History

Historical Context

The Fair Credit Reporting Act of 1970 established consumer rights in credit reporting, influencing modern payment methods. By 2025, credit card installment plans surged 46%, with one in three consumers using them, particularly among Gen Z. This shift reflects changing consumer behavior towards flexible payment options, indicating a significant evolution in the landscape of consumer finance and credit utilization.

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Story summary

Credit card installment plans surged 46% in the summer of 2025.
One in three consumers used credit card installments, especially for travel expenses, while buy now, pay later (BNPL) use remained stable.
Higher-income individuals showed greater preference for both payment methods.
Younger consumers, especially Gen Z, favored credit card installments for essential and discretionary purchases.
The average spending by users of these options exceeded $1,000.

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