The Credit Confidence Conundrum: i2c Study Unveils a Perception Gap Among U.S. Consumers

42% of U.S. Consumers Believe They Would Be Denied a New Credit Card, Highlighting a Significant Opportunity for Issuers to Improve Consumer Confidence and Close the "Approval Perception Gap”

REDWOOD CITY, Calif.--(BUSINESS WIRE)--i2c Inc., a global financial technology innovator, today released a new commissioned study titled “Consumer Credit Economy: Strategy vs. Spontaneity- Navigating the Great Credit Divide.” Conducted in collaboration with PYMNTS Intelligence and based on a nationally representative sample of over 2,000 U.S. consumers, the report reveals a critical perception gap in the consumer credit market. The research findings show that many consumers are under the false impression that they would be denied a new credit product and, as a result, “self-deny” by never applying.

The study also uncovers a diverse range of consumer credit use and a strong desire for more flexible tools. While many people use credit for planned expenses, providers must recognize the crucial role of flexibility, especially for younger consumers and those with tighter budgets who often make spontaneous purchases. By building more adaptable products, card issuers can better meet these varied needs.

“It's no longer enough for banks to simply approve or deny applications; they must first address the psychological barriers that cause many eligible consumers to self-select out of the application process due to anticipated denial,” said David Durovy, SVP of Transformation at i2c Inc. “The future of credit access will be defined by institutions that not only dispel these misconceptions through transparent marketing and financial literacy, but also build flexibility into their products and offer a clear narrative about how they help consumers strategically build their credit for long-term success.”

A central theme of the research is that building and improving credit takes center stage in how consumers view their personal finances. Younger individuals and those with prime or subprime scores are especially focused on improving their credit scores. For providers, this presents a key opportunity to capture new interest by crafting a compelling narrative around how their products can serve as a strategic tool for financial progress.

Key findings from the report include:

• Consumers overestimate denial rates: A significant perception gap exists, with 42% of consumers doubting they'd be approved for a new credit card, nearly three times the actual denial rate.
• Credit serves a dual purpose: Consumers use credit not only for planned purchases (53% of consumers) but also as a crucial safety net for unexpected expenses.
• Credit scores drive new applications: Building or improving a credit score is a key motivator, with 26% of consumers without a card citing this as a reason to apply for one.
• Willingness to pay for premium features: There's a clear market for enhanced credit products, as consumers are willing to pay an average one-time fee of $99 for cards with better benefits and flexibility.

“Flexibility matters because consumer credit serves a twin purpose, both strategic for planned purchases and reactive for unexpected expenses,” said Karen Webster, CEO, PYMNTS. “This dual function drives demand for credit cards and other products that can be used in different ways, depending on the nature of the purchase or the user’s financial situation at the time. For example, 59% of consumers express interest in having a credit card that allows them to choose each month between earning rewards and a lower interest rate.”

i2c is uniquely positioned to help clients support their customers on their credit journey. Its single global platform provides the flexibility to accommodate customers’ ever-evolving needs, empowering issuers to move beyond a one-size-fits-all approach. By leveraging advanced, hyper-targeted messaging capabilities, i2c clients can deliver personalized, real-time communications that proactively engage eligible consumers and build a compelling narrative around financial empowerment. This approach fosters deeper relationships, increases customer engagement and drives new revenue streams for issuers.

For a deeper dive into these insights and more: Access the full report available for complimentary download here.

Additionally, i2c is set to host a webinar, “The Credit Race: Closing the Perception Gap to Win,” on Monday, September 22, 2025, at 1:00 pm EDT. Speakers include:

• David Durovy, SVP of Transformation, i2c
• Wendy Smith, AVP of Payment Systems, Clearview Federal Credit Union
• John Gaffney, Chief Content Officer, PYMNTS

Register to reserve your spot and join the conversation.

About i2c Inc.

An award-winning global financial technology innovator powering credit, debit, prepaid, core banking, and money movement solutions, i2c unifies banking and payments in an all-in-one platform, transforming product personalization with a customer-centric architecture and accelerating speed-to-market with composable building-block solutions. Financial institutions and fintechs globally trust i2c to help them quickly and efficiently configure and scale differentiated financial offerings in an evolving, competitive market. Powered by innovation and driven by trust for more than 25 years, i2c blends modern ingenuity with expert reliability to supercharge exceptional banking and payments experiences for millions of users and billions of transactions worldwide.

For more information, visit i2cinc.com and follow us on LinkedIn at @i2cinc.