A new study from J.D. Power highlights growing financial strain among U.S. credit card customers, with more than half of cardholders carrying revolving debt and 56% classified as financially unhealthy. The findings reveal widening divides in consumer satisfaction and underline the pressure many households are facing in today’s economy.
By the numbers:
- 53% of cardholders are carrying revolving debt.
- 56% are considered financially unhealthy.
- 611: Overall customer satisfaction (on a 1,000-point scale), up just one point from 2024.
- $1,058: Average monthly card spend, down $68 from last year.
- 20% of cardholders used Buy Now Pay Later (BNPL) in the past year; 37% say they would consider BNPL from another lender.
Key trends:
- Satisfaction jumped nine points among financially healthy cardholders and four points among those not revolving balances. But it declined among financially unhealthy customers, especially around credit limits, account management, and balance transfers.
- Lower household incomes and economic volatility are driving reduced credit card spending, while BNPL continues to gain traction as an alternative payment tool.
- Cards with annual fees, especially premium products above $500, deliver higher overall satisfaction despite dissatisfaction with the fees themselves.
- 65% of cardholders have been charged extra for using their credit card, dropping satisfaction scores by an average of 39 points. Most said they switched to alternative payment methods to avoid surcharges.
- Awareness of card issuers’ use of AI remains low, but one-third of consumers believe fraud prevention and security improvements are the biggest potential benefits.
What they’re saying
