The share of U.S. credit card customers classified as financially unhealthy rose to 60% from 56% a year earlier, according to the J.D. Power 2026 U.S. Credit Card Satisfaction Study released last week.
Average total monthly credit card spending across all cardholders in the study rose $109 year over year to $1,167. J.D. Power described the diverging results as a growing K-shaped divide, with financially healthy cardholders drawing more value from rewards and lifestyle benefits while financially vulnerable customers face greater pressure from debt and rising fees along with 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. He said issuers should recognize where customers sit financially, deliver tangible value to those who can use premium perks, and strengthen product support for those under greater strain, adding that effective fraud protection is essential before customers look elsewhere.
The share of customers carrying a balance held roughly steady at 52%, compared with 53% a year earlier. Among those carrying a balance, 30% owe $2,500 or more. 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%. J.D. Power also found that 59% of cardholders sometimes abandon a purchase when confronted with a retailer surcharge for card use, with the highest rates among customers under the greatest financial strain.
Card engagement showed signs of retreat. The average number of benefits used fell to 2.3 from 2.5, and just 29% of customers said their card use maximizes rewards earning. Fraud incidence rose to 13%, while proactive issuer outreach to identify it fell to 38% from 42%. Confidence in the security of customers’ identity and financial information dropped five percentage points to 37%.
Overall satisfaction measured 613 on a 1,000-point scale, reaching 641 among airline co-brand cardholders. Cards carrying annual fees of $300 or more gained in value satisfaction despite recent fee increases, while satisfaction among cards with neither rewards nor annual fees was 573.
American Express ranked highest in overall issuer satisfaction for a seventh consecutive year with a score of 668, followed by Chase at 635 and Bank of America at 630.
