Banking and Credit
Access to financial services from banks and credit unions can be important for people's financial well-being. Most adults had a bank account and were able to obtain credit in 2024, but notable gaps in access to financial services still exist, particularly among those with low income, Black and Hispanic adults, and those with a disability.
Adults of all incomes reported experiencing financial fraud and scams, with many unable to recover all the funds that were lost. Older adults tended to lose more money than younger adults, perhaps because they also had more money to begin with.
Bank Account Ownership
Six percent of adults were "unbanked" in 2024, meaning neither they nor their spouse or partner had a checking, savings, or money market account (figure 24). The current unbanked rate was similar to recent years, though it has inched up from 5 percent in 2020.
Figure 24. Unbanked rate (by year)
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Note: Among all adults.
Unbanked rates remained far higher among low-income adults. Twenty-two percent of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. As with prior years, unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability (table 28).
Since 2021, the survey has asked respondents with a bank account whether they paid an overdraft fee on their bank account. In 2024, 11 percent of adults with a bank account said they paid an overdraft fee in the prior 12 months, similar to the shares seen in 2022 and 2023, but up 1 percentage point from 2021.
Differences in overdraft use by demographic characteristics also looked similar to prior years. Among banked adults, higher shares of low and middle income adults, Black and Hispanic adults, and adults with a disability paid an overdraft fee in the prior 12 months (table 28).
Table 28. Bank account ownership and overdraft (by demographic characteristics)
Percent
| Characteristic | Unbanked rate | Paid overdraft fee in prior year (among adults with a bank account) |
|---|---|---|
| Family income | ||
| Less than $25,000 | 22 | 16 |
| $25,000–$49,999 | 8 | 19 |
| $50,000–$99,999 | 2 | 13 |
| $100,000 or more | 1 | 6 |
| Age | ||
| 18–29 | 13 | 16 |
| 30–44 | 8 | 14 |
| 45–59 | 5 | 13 |
| 60+ | 2 | 6 |
| Race/ethnicity | ||
| White | 3 | 9 |
| Black | 13 | 21 |
| Hispanic | 12 | 16 |
| Asian | 6 | 6 |
| Disability status | ||
| Disability | 12 | 16 |
| No disability | 5 | 10 |
| Overall | 6 | 11 |
Note: Among all adults.
Nonbank Check Cashing and Money Orders
Some people go outside of traditional banks and credit unions for certain financial services. Thirteen percent of adults used nonbank check cashing or money orders in 2024, similar to the recent years, yet down 4 percentage points from 2019, before the pandemic.
Both banked and unbanked adults used nonbank providers to conduct financial transactions, but the unbanked were much more likely to have done so. Eleven percent of banked adults used a nonbank money order or check cashing service, compared with 32 percent of unbanked adults (figure 25).
Figure 25. Use of nonbank check cashing or money orders (by bank account ownership)
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Note: Among all adults.
Use of nonbank money orders and check cashing has fallen among both unbanked and banked adults since 2019. That said, use among banked adults has remained at similar levels since 2020, while use among unbanked adults has flattened out over the past couple of years (figure 25).
Similar to demographic patterns in bank account ownership, use of nonbank check cashing and money orders was more common among those with lower income, Black and Hispanic adults, and adults with a disability (table 29). Use among Black adults was particularly high at 3 in 10.
Table 29. Use of nonbank check cashing or money orders (by demographic characteristics)
| Characteristic | Percent |
|---|---|
| Family income | |
| Less than $25,000 | 23 |
| $25,000–$49,999 | 21 |
| $50,000–$99,999 | 11 |
| $100,000 or more | 5 |
| Age | |
| 18–29 | 17 |
| 30–44 | 15 |
| 45–59 | 12 |
| 60+ | 9 |
| Race/ethnicity | |
| White | 8 |
| Black | 30 |
| Hispanic | 18 |
| Asian | 9 |
| Disability status | |
| Disability | 20 |
| No disability | 11 |
| Overall | 13 |
Note: Among all adults.
Cryptocurrency
Cryptocurrencies are relatively new digital assets that may be held as an investment or used for making financial transactions.53 The 8 percent of adults who used cryptocurrency for either purpose remained at similar levels to the prior year. However, this share was down from 12 percent in 2021, the first time the survey asked about cryptocurrency (table 30).54
Table 30. Cryptocurrency use
Percent
| Type of use | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Bought cryptocurrency or held as an investment | 11 | 8 | 7 | 7 |
| Used cryptocurrency to buy something or make a payment | 2 | 2 | 1 | 2 |
| Used cryptocurrency to send money to friends or family | 1 | 2 | 1 | 1 |
| Any use of cryptocurrency | 12 | 10 | 7 | 8 |
Note: Among all adults. Respondents could select multiple answers.
Buying or holding cryptocurrency as an investment remained more common than using it for financial transactions. Seven percent of adults bought or held cryptocurrency as an investment in the prior 12 months. In contrast, 2 percent of adults said they used cryptocurrency to make a financial transaction: 2 percent used cryptocurrency to buy something or make a payment, and 1 percent used it to send money to friends or family (table 30).55
The survey asked those who used cryptocurrency to make financial transactions for the main reason they did so (table 31). At 35 percent, the most cited reason was that the person or business receiving the money preferred cryptocurrency, followed by the ability to send the money faster. Relatively few transactional cryptocurrency users indicated that either safety (5 percent) or a lack of trust in banks (3 percent) contributed to this choice.
Table 31. Main reason people used cryptocurrency for financial transactions
| Reason | Percent |
|---|---|
| Preferred by the recipient of the money | 35 |
| To send the money faster | 18 |
| Cheaper | 13 |
| Privacy | 12 |
| Safer | 5 |
| Don't trust banks | 3 |
| Other | 13 |
Note: Among adults who used cryptocurrency for financial transactions.
Use of cryptocurrency for financial transactions was more common among the unbanked as well as those who used nonbank check cashing and money orders. Five percent of unbanked adults used cryptocurrency for financial transactions, compared with 2 percent among banked adults. Regardless of bank account ownership, those who used nonbank check cashing or money orders had a greater propensity to use cryptocurrency for transactions—7 percent among those who used nonbank check cashing or money orders compared with 1 percent among those who did not. That said, use of cryptocurrency for financial transactions remained very low, even among groups who were more likely to use cryptocurrency in this way.
Credit Outcomes and Perceptions
Since 2021, when self-reported financial well-being was at the highest level since the survey began (see the "Overall Financial Well-Being" section of this report), consumer credit confidence has fallen. Sixty-two percent of adults felt very confident their credit card application would be approved, if they were to apply, down from 65 percent in 2021. That said, credit confidence remains at the same level as 2019, before the pandemic (figure 26).
Over this same period, the share of adults applying for credit has gone down, while the share of applicants who were denied has increased. Thirty-four percent of adults applied for any type of credit in 2024, down 2 percentage points from the prior year and down 4 percentage points from 2021. Among those who applied, one-third were either denied credit or approved for less credit than they requested, up 5 percentage points from 2021 (figure 26).
Figure 26. Credit outcomes and perceptions (by year)
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Note: Among all adults.
Denial rates continued to differ widely by race and ethnicity, with Black and Hispanic applicants being particularly likely to report a denial or an approval for less credit than requested.56 Moreover, the racial and ethnic gap in denial rates has remained about the same over the past decade (figure 27).
Figure 27. Denied credit or approved for less than was requested (by race/ethnicity)
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Note: Among adults who applied for credit.
Credit Cards
People use credit cards in different ways. Some use credit cards primarily to make payments, paying off their balances in full each month and avoiding interest charges. Others carry a balance and incur borrowing costs. Eighty-one percent of adults had a credit card in 2024, down from a high of 84 percent in 2021, yet up 5 percentage points over the past decade (figure 28).
While credit card ownership has increased over the past decade, carrying a credit card balance has become less prevalent. In 2024, 46 percent of credit card owners said they carried a balance at least once during the prior 12 months, down 11 percentage points since 2015 (figure 28).
Figure 28. Credit card ownership and usage (by year)
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Note: Among adults all adults. Carried a balance reflects the share who carried a balance at least once in the past year.
Adults with income under $100,000 were more likely to carry credit card balances from month to month. That said, the lowest-income adults were the least likely to have a credit card in the first place. Consequently, middle-income adults were the most likely to have a credit card that they used to finance purchases by carrying balances from one month to the next (table 32).
Rates of credit card ownership were lower among Black and Hispanic adults, adults age 18 to 29, and adults with a disability. For Black adults who did have a credit card, carrying a balance was particularly common at 72 percent. Carrying a balance was also more prevalent among credit card owners who were Hispanic and those with a disability (table 32).
Table 32. Credit card ownership and usage (by demographic characteristics)
Percent
| Characteristic | Has a credit card | Carried a balance (among credit card holders) | Carried a balance (among all adults) |
|---|---|---|---|
| Family income | |||
| Less than $25,000 | 46 | 55 | 25 |
| $25,000–$49,999 | 74 | 59 | 43 |
| $50,000–$99,999 | 89 | 50 | 44 |
| $100,000 or more | 97 | 38 | 36 |
| Age | |||
| 18–29 | 63 | 44 | 28 |
| 30–44 | 79 | 52 | 41 |
| 45–59 | 86 | 54 | 46 |
| 60+ | 92 | 37 | 34 |
| Race/ethnicity | |||
| White | 86 | 40 | 35 |
| Black | 69 | 72 | 50 |
| Hispanic | 72 | 60 | 43 |
| Asian | 89 | 25 | 22 |
| Disability status | |||
| Disability | 67 | 56 | 38 |
| No disability | 84 | 44 | 37 |
| Overall | 81 | 46 | 37 |
Note: Among all adults. Carried a balance reflects the share who carried a balance at least once in the past year.
Buy Now, Pay Later
Buy Now, Pay Later (BNPL) products provide consumers the option to pay for a purchase with a small number of equal payments (usually four), often without being charged interest. For example, someone purchasing a $100 item may be able to make one payment of $25 at the time of purchase, then make three additional monthly payments of $25. Fifteen percent of people used BNPL in the prior 12 months, up from 14 percent in 2023 and 10 percent in 2021, when the survey first asked about BNPL (figure 29).
Figure 29. Use of Buy Now, Pay Later (BNPL)
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Note: Among all adults.
The top two reasons for using BNPL were wanting to spread out payments (87 percent) and convenience (82 percent) (table 33). Over one-half (58 percent) of those who used BNPL—and an even higher 72 percent of those with income less than $50,000 who used BNPL—said they used BNPL because it was the only way they could afford the purchase.57
Table 33. Reasons for using Buy Now, Pay Later (BNPL)
| Reason | Percent |
|---|---|
| Wanted to spread out payments | 87 |
| Convenience | 82 |
| Avoid interest charges | 58 |
| Only way I could afford it | 58 |
| Did not want to use a credit card | 53 |
| Wanted a fixed number of payments | 49 |
| Only accepted payment method I had | 22 |
Note: Among adults who have used BNPL in the past year. Respondents could select multiple answers.
Use of BNPL was more common among low- and middle-income adults, Black and Hispanic adults, and women (table 34). Differences by race and ethnicity were large, with Black and Hispanic adults about twice as likely to use BNPL as White or Asian adults. Additionally, sizeable differences remain even after controlling for other factors, such as income and age.58
Table 34. Use of Buy Now, Pay Later (BNPL) use (by demographic characteristics)
Percent
| Characteristic | Used BNPL | Paid late (among users) |
|---|---|---|
| Family income | ||
| Less than $25,000 | 16 | 40 |
| $25,000–$49,999 | 19 | 26 |
| $50,000–$99,999 | 16 | 21 |
| $100,000 or more | 11 | 13 |
| Age | ||
| 18–29 | 19 | 32 |
| 30–44 | 19 | 25 |
| 45–59 | 16 | 21 |
| 60+ | 8 | 12 |
| Race/ethnicity | ||
| White | 11 | 16 |
| Black | 25 | 29 |
| Hispanic | 21 | 32 |
| Asian | 12 | 27 |
| Male/female | ||
| Male | 12 | 22 |
| Female | 17 | 25 |
| Overall | 15 | 24 |
Note: Among all adults.
Nearly one-fourth of BNPL users were late making a payment, a sharp uptick from the prior year (figure 29). While BNPL users of all income groups saw an increase in the share paying late, the increase among those with income less than $25,000 was particularly large at 9 percentage points.
Policies around fees for late payments may differ depending on the specific BNPL product and provider. Fifty-seven percent of those late making a payment (13 percent of those who used BNPL) said they were charged extra for being late.
Nonbank Small Dollar Credit
Consumers with negative credit history, or no credit history, sometimes use nonbank credit products such as payday or pawn loans when a small dollar credit need arises. These products frequently have relatively high borrowing costs.
In 2024, 6 percent of adults used a payday, pawn, auto title, or tax refund anticipation loan, unchanged from the prior year, yet up from a low of 4 percent in 2020. While overall use tends to be small, use is more likely among adults with lower income, Black and Hispanic adults, and adults with a disability (table 35). Notably, differences by race, ethnicity, and disability status were present even after controlling for other factors such as income and age.
Table 35. Use of payday, pawn, auto title, and refund anticipation loans (by demographic characteristics)
| Characteristic | Percent |
|---|---|
| Family income | |
| Less than $25,000 | 11 |
| $25,000–$49,999 | 11 |
| $50,000–$99,999 | 5 |
| $100,000 or more | 2 |
| Age | |
| 18–29 | 8 |
| 30–44 | 10 |
| 45–59 | 6 |
| 60+ | 2 |
| Race/ethnicity | |
| White | 3 |
| Black | 13 |
| Hispanic | 10 |
| Asian | 6 |
| Disability status | |
| Disability | 10 |
| No disability | 5 |
| Overall | 6 |
Note: Among all adults.
Financial Fraud and Scams
According to data from the Consumer Sentinel Network, the number and severity of financial fraud incidents and scams has spiked in recent years.59 Perpetuators of financial fraud or scams do so in a variety of ways, often involving consumers' credit cards, bank accounts, or investment accounts.60 In 2024, the SHED asked about experiences with financial fraud for the first time. Twenty-one percent of adults reported that they experienced financial fraud or scams involving their money, with 17 percent reporting fraud related to their credit card, and 8 percent reporting another type of financial fraud.61
Figure 30. Type of financial fraud (by age)
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Note: Among all adults. Key identifies bars in order from left to right.
Adults age 45 and over were more likely than younger adults to experience financial fraud or scams, largely driven by their higher rates of experiencing credit card-related fraud (figure 30). In contrast to differences by age, the incidence of financial fraud was similar by income, race and ethnicity, and gender.
While credit card fraud was the most common type of financial fraud, consumers are typically not required to cover those losses directly. Among adults experiencing non-credit card-related fraud, 63 percent lost money, and 32 percent said at least some of that money was not recovered.62 The total amount of non-credit-card fraud was an estimated $84 billion in 2024. Consumers reported recovering $21 billion of that, resulting in an estimated net loss of $63 billion borne directly by consumers.63
Before any funds were recovered, half of those experiencing non-credit card-related fraud lost at least $500 and one-fourth lost $2,000 or more.64 Older adults tended to lose larger amounts of money, likely at least partially because older adults often have more assets to begin with (table 36).
Table 36. Distribution of dollar losses per incident, before any funds were recovered (by age)
Dollars
| Age | 5th Percentile | 25th Percentile | Median | 75th Percentile | 95th Percentile |
|---|---|---|---|---|---|
| 18–44 | 36 | 181 | 423 | 1,200 | 15,000 |
| 45–59 | 30 | 150 | 500 | 2,500 | 10,000 |
| 60+ | 50 | 160 | 600 | 3,000 | 31,000 |
| Overall | 36 | 160 | 500 | 2,000 | 18,000 |
Note: Among adults who lost money, before any recovery, because of non-credit card-related fraud. Results exclude the seven respondents who reported recovering more money than they lost.
Financial fraud and scams also have non-monetary costs for those experiencing them, such as time spent trying to recover funds. About 3 in 10 of those experiencing non-credit card related fraud spent 10 or more hours trying to recover funds or dealing with other consequences from the most recent fraud they experienced. Nearly 4 in 10 spent between one and nine hours, while 3 in 10 spent one hour or less.
References
53. Cryptocurrencies are decentralized digital assets that have a distributed ledger and can be used for peer-to-peer payments. For additional information on cryptocurrencies, see Board of Governors of the Federal Reserve System, Money and Payments: The U.S. Dollar in the Age of Digital Transformation (Washington: Board of Governors, January 2022), https://www.federalreserve.gov/publications/money-and-payments-discussion-paper.htm. Return to text
54. Because the survey is conducted online, the sample population may be more technologically connected than the overall population, which could increase the share of adults reporting use of emerging technologies such as cryptocurrencies. Return to text
55. While only a small share of adults used cryptocurrency to send money to friends or family, the survey asked those who did if the recipient was outside of the United States. In 2024, 28 percent of adults who used cryptocurrency to send money to friends or family indicated that at least one transfer was made internationally. Return to text
56. Black and Hispanic adults saw higher denial rates even after controlling for other characteristics such as income and age. Return to text
57. Work using previous years of the SHED shows that consumers who appear liquidity or credit constrained were more likely to use BNPL, and most said they did so because it was the only way they could afford to make the purchase. Jeff Larrimore, Alicia Lloro, Zofsha Merchant, and Anna Tranfaglia, "The Only Way I Could Afford It: Who Uses BNPL and Why," FEDS Notes (Washington: Board of Governors of the Federal Reserve System, December 20, 2024), https://doi.org/10.17016/2380-7172.3675. Return to text
58. In recent years, Black and Hispanic women have been particularly likely to use BNPL, perhaps due, at least in part, to a greater preference for the specific product features of BNPL such as a fixed number of payments. See Larrimore, Lloro, Merchant, and Tranfaglia, "The Only Way I Could Afford It: Who Uses BNPL and Why," https://doi.org/10.17016/2380-7172.3675. Return to text
59. Consumer Sentinel Network Databook, Federal Trade Commission, 2024, https://www.ftc.gov/system/files/ftc_gov/pdf/csn-annual-data-book-2024.pdf. Return to text
60. See the Federal Bureau of Investigation website at https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams. Return to text
61. Estimates of fraud types do not sum to total because respondents could report both types of fraud, and four percent of adults did so. Among banked adults who experienced non-credit cared-related fraud, 57 percent said the fraud involved their checking, saving, or money market account. Return to text
62. Estimates are among those who know whether they lost money. Return to text
63. Respondents were asked about the most recent fraud they experienced, so those experiencing multiple incidents of fraud may have had additional losses. Consumers reported $12.5 billion in losses in 2024 according to the Consumer Sentinel Network, a database containing fraud reports filed by consumers, available at https://www.ftc.gov/system/files/ftc_gov/pdf/csn-annual-data-book-2024.pdf. In 2023, reported losses totaled $10 billion, and after accounting for underreporting, the estimated range of total losses was $24 billion to $158 billion. See Federal Trade Commission (FTC), Protecting Older Consumers, 2023–2024 (Washington: FTC, October 2024), https://www.ftc.gov/system/files/ftc_gov/pdf/federal-trade-commission-protecting-older-adults-report_102024.pdf. Return to text
64. Among those adults who did not recover all their money, the median amount lost and not recovered was $500, and the 75th percentile was $2,500. Return to text