Financial strain widens divide among U.S. credit card customers

Financial health among U.S. credit card customers is deteriorating even as monthly card spending rises, creating an increasingly pronounced divide between consumers benefiting from premium rewards and those struggling with debt and fees, according to JD Power.

The JD Power 2026 U.S. Credit Card Satisfaction Study found 60 percent of card customers are now classified as financially unhealthy, up from 56 percent a year earlier. Meanwhile, average monthly credit card spending increased $109 year over year to $1,167.

JD Power said the contrasting trends point to a growing K-shaped divide. Financially healthy consumers are deriving greater value from rewards and lifestyle benefits, while financially vulnerable cardholders face greater pressure from debt and rising fees.

"The widening gap in financial health means value perception with credit cards is tilted toward debt-free rewards hunters," said John Cabell, managing director of payments intelligence at JD Power. Issuers, he added, need to recognize customers' differing financial circumstances while providing value and appropriate support.

Premium cards pull ahead

Overall credit card satisfaction registered 613 on JD Power's 1,000-point scale. Airline co-branded cards led with a score of 641, benefiting from travel perks and exclusive experiences. Premium cards carrying annual fees of $300 or more also posted increased value satisfaction despite recent fee increases. Conversely, satisfaction among customers holding cards with neither rewards nor annual fees was 573.

Cost sensitivity is particularly evident among financially strained consumers. Fifty-nine percent of cardholders sometimes abandon purchases when merchants impose card surcharges, with the behavior most common among consumers experiencing the greatest financial pressure.

The percentage of consumers carrying balances remained relatively steady at 52 percent, compared with 53 percent a year ago. Among balance-carrying customers, 30 percent owe at least $2,500.

Card value—encompassing terms, benefits and rewards—has become a more important satisfaction driver. Yet customers used an average 2.3 card benefits, down from 2.5 last year, and just 29 percent said their card usage maximizes rewards earnings.

Fraud concerns challenge digital gains

Digital adoption continued to increase across account opening, management and customer service, but gains in digital engagement were accompanied by declining confidence in security.

Fraud incidence rose to 13 percent, while proactive issuer outreach to identify fraud declined to 38 percent from 42 percent. Just 37 percent of customers expressed confidence in the security of their identity and financial information, down 5 percentage points from one year ago.

American Express ranked highest in issuer satisfaction for the seventh consecutive year, scoring 668, followed by Chase at 635 and Bank of America at 630. Among individual products, Chase Freedom Flex led bank rewards cards without annual fees, while the Platinum Card from American Express led rewards cards with annual fees.

Now in its 20th year, the U.S. Credit Card Satisfaction Study measures satisfaction across seven dimensions, including benefits, customer service, rewards and terms. The 2026 study is based on 40,386 credit card customers' responses collected from June 2025 through May 2026.

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