CHICAGO–In what could become a Grinch-like scenario for many in early 2026, holiday shoppers report that they are expecting to rely more heavily on credit cards this season, with 42% naming it their preferred payment method — up from 38% in 2024, according to TransUnion’s Q4 2025 U.S. Consumer Pulse study.
The study, which also found Americans remain most interested in shopping during the Thanksgiving holiday period, specifically revealed that, 41% plan to shop online between Thanksgiving and Cyber Monday, while 33% intend to shop in person during that weekend.
The Findings
According to TransUnion, the newest Consumer Pulse study has found:
- Holiday shoppers report 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.
- Approximately 57% of Americans 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.
- 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.
- 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, TransUnion reported.
- In addition to the expected rise in credit card usage this holiday 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.
The newest Consumer Pulse study is based on a survey of 3,000 U.S. consumers 18 years of age and older between October 1-14, 2025.
