60% of Credit Card Customers Now Financially Unhealthy as Debt, Fees and Fraud Pressures Mount
By CU Today Staff —
TROY, Mich. — Six in 10 U.S. credit card customers are now classified as financially unhealthy, up from 56% a year ago, as a widening divide leaves financially vulnerable consumers struggling with debt and fees while healthier cardholders reap more rewards and premium benefits, according to the J.D. Power 2026 U.S. Credit Card Satisfaction Study.
At the same time, average monthly credit card spending across all cardholders rose $109 year over year to $1,167. J.D. Power said the diverging trends point to a growing K-shaped divide, with financially healthy customers getting greater value from rewards and lifestyle benefits while financially vulnerable customers face mounting pressure and declining confidence in card security.
“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 J.D. Power. “It’s a tough balance. Issuers should recognize where customers are financially, deliver clear and tangible value to those who can benefit from premium perks and enhance product support for those under greater financial pressure. At the same time, strong, effective fraud protection is a must before customers start looking elsewhere.”
The share of customers carrying a balance remained relatively steady at 52%, compared with 53% a year ago, but among those carrying balances, 30% owe $2,500 or more. J.D. Power also found 59% of cardholders sometimes abandon a purchase when faced with a retailer surcharge, with that behavior most common among those under the greatest financial strain. More than one-third of financially strained cardholders said they would be more inclined to carry debt if their interest rate were capped at 10%.
The divide is also showing up in card satisfaction. Overall satisfaction was 613 on a 1,000-point scale, rising to 641 among airline co-brand cardholders. Premium cards carrying annual fees of $300 or more gained in value satisfaction despite recent fee increases, while satisfaction among customers with cards carrying neither rewards nor annual fees was just 573. Meanwhile, fraud incidence rose to 13%, proactive issuer outreach to identify fraud fell to 38% from 42%, and confidence in the security of customers’ identity and financial information declined 5 percentage points to 37%.
American Express ranked highest in overall issuer satisfaction for the seventh consecutive year with a score of 668, followed by Chase at 635 and Bank of America at 630. Chase Freedom Flex led bank rewards cards with no annual fee, while The Platinum Card from American Express led rewards cards with an annual fee. The study, now in its 20th year, is based on responses from 40,386 credit card customers collected from June 2025 through May 2026.
Originally reported by CU Today.