Consumers are reporting that they are expecting to rely more heavily on credit cards this season, with 42% naming it their preferred payment method—up from 38% last year. According to TransUnion’s (NYSE: TRU) Q4 2025 U.S. Consumer Pulse study, US consumers remain interested in shopping during the Thanksgiving holidays. 41% intend to shop online between Thanksgiving and Cyber Monday, while 33% plan to spend / make purchases in person during that time period.
The Consumer Pulse study is based on a survey of 3,000 U.S. consumers 18 years of age and older “between Oct 1-14, 2025.”
Approximately 57% of US consumers expect to spend the “same or more this year compared to last year – the same percentage reported for the 2024 holiday season. Nearly six in 10 U.S. consumers (58%) expect to spend over $250 – an increase from 56% last year.”
Charlie Wise, senior vice president and head of global research and consulting at TransUnion:
“As the holiday shopping season kicks off in earnest next weekend, our latest Consumer Pulse study suggests we may see increased spending this year. It’s clear that credit cards will be the preferred payment method for many consumers. That’s not surprising, given that nearly 175 million Americans now hold one or more active credit cards and we continue to see steady growth in both cardholders and the number of open credit cards—an indication of strong consumer demand for credit and confidence from issuers in consumers’ ability to manage their payments.”
The Consumer Pulse study found that “the majority of Americans – 55% – are optimistic about their household finances over the next 12 months.”
Optimism is highest among younger generations, with “65% of Millennials and 63% of Gen Z expressing a positive outlook.”
While overall optimism is down from “58% at the same time last year, it has remained relatively stable – ranging between 54% and 58% since Q1 2023, with a single peak of 60% in Q3 2024.”
Since the research study began tracking optimism and pessimism in 2021, “the highest levels of optimism were recorded in the post-pandemic period of 2021, when they ranged from 62% to 64%.”
Inflation remains by far the top financial worry for consumers, with 81% citing it as one of the top three concerns “affecting their household finances over the next six months – comparable to the 80% reading in Q4 2024.”
Recession is the second most “common concern (52% ranking it in their top three), followed by housing prices (43%).”
While 48% of Americans expect their income “to increase in the next 12 months, this represents a notable decline from 53% who expressed the same optimism in Q4 last year.”
One likely factor behind this drop is concern “over potential trade tariffs: 86% of respondents reported at least some level of concern over the impact of tariffs, with 34% saying they are very concerned.”
Wise added:
“We continue to see a resilient consumer, even as optimism has declined from its peak in recent years. Uncertainty around tariffs and the timing of our research—conducted at the onset of the federal government shutdown – may be contributing factors. These concerns could also help explain consumers’ anticipated rise in credit card usage this holiday season.”
In addition to the expected rise in credit card usage this festive season, the Consumer Pulse study found that “30% of consumers plan to apply for new credit or refinance existing credit within the next year.”
Among them, 55% intend to “apply for a new credit card.”
Prior to opening a new credit card, it is vital for consumers “to understand their credit standing to ensure they can secure the best credit offers.”
To support this, TransUnion launched Credit Essentials —a new direct-to-consumer experience offering credit management tools.
U.S. consumers may access their “credit reports and scores daily, as well as personalized credit offers, credit education materials.”
With Credit Essentials, consumers receive alerts about changes to their TransUnion credit report – such “as late payments, new accounts, or hard inquiries – as well as notifications about shifts in their credit score.”
The platform also enables consumers with borrowing confidence by providing credit product recommendations based on individual profiles. Users can browse and compare offers and explore options for loans, mortgages, and refinancing.
TransUnion’s offering comes at a time when consumers’ “recognition of the need for regular credit monitoring is extremely high.”
The Consumer Pulse study found that more than half of Americans (55%) check their credit report at least “monthly, and nearly all (95%) said it’s important to monitor their credit report.”
Although many consumers noted that they check their credit report because it’s free (47%), other reasons include “protecting against fraud (46%), monitoring their report for accuracy (44%) and improving their credit score (32%).”