Varo's 2024 Consumer Credit Watch Report

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The story of the post-COVID financial landscape for many Americans has been centered on the rising costs of everyday necessities like groceries, utilities, and housing. It's also been a story of finding ways to overcome those rising prices, especially by using credit.

So we surveyed over 1,500 everyday Americans to learn how they're dealing with the pressures of inflation and how borrowing is helping them bridge the gaps in their day-to-day finances.

For the full survey results, click here to download the PDF.

Here are a few key takeaways from the survey:

1. Daily necessities are the new luxury

The #1 use of credit is not for electronics, travel, or apparel – the purchase that everyday Americans are using credit cards on most often is groceries. And when survey respondents were asked how they would utilize additional credit, the top two responses were groceries and utilities/bills.

2. For many Americans, debt is only increasing

Despite annual inflation decreasing to below 3% in 2024, Americans living paycheck to paycheck are still feeling the squeeze. A staggering 73% reported having the same or more debt compared to a year ago.

3. The majority don't feel the credit system is totally fair

Survey respondents by and large did not view the credit system as wholly fair, with only 27% describing the system as "fair" and 43% saying they felt they should have access to more credit.

4. A little extra credit access could go a long way

When asked how they would use additional credit if they had access, the overwhelming majority (70%) responded that they would use just $500 or less.

At Varo, we're staying committed to helping everyday Americans build strong credit, get access to cash advances when they need, and providing banking with no hidden fees. And we don't plan on stopping there.

There's a lot more to unpack in this Consumer Credit Watch survey. To dig in, check out the full survey PDF here.