A growing share of U.S. credit card holders is showing signs of financial strain, according to JD Power's 2026 U.S. Credit Card Satisfaction Study. The research, released Tuesday, found that 60% of cardholders are now classified as financially unhealthy, up from 56% a year earlier. This shift is altering how consumers perceive the value of their cards, with a widening gap between those who carry balances and those who don't.
“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. The study, now in its 19th year, surveyed more than 30,000 cardholders across the country.
Rising Balances and Spending
Average monthly credit card spending climbed $109 year-over-year to $1,167. The average number of card benefits actually used fell to 2.3 from 2.5, suggesting that many cardholders are not fully leveraging their perks. Among the 52% of cardholders who carry a balance, nearly one in three holds more than $2,500 in debt.
Fraud incidence rose to 13% year-over-year, while the share of issuers proactively reaching out to customers about suspicious activity dropped from 42% to 38%. Customer confidence in the security of their identity and financial information fell five percentage points, to just 37%. These trends are particularly concerning for advisors who see clients relying on credit cards for short-term liquidity, as rising balances and fraud concerns can signal broader financial vulnerability.
Premium Cards Hold Their Ground
On satisfaction, American Express scored 668 on a 1,000-point scale, followed by Chase at 635 and Bank of America at 630. The study measures satisfaction across seven dimensions, including rewards earning, customer service, and account management.
Airline co-branded cardholders posted the highest overall satisfaction at 641, well above the 613 average. Delta SkyMiles American Express products swept the top three: the Delta SkyMiles Reserve scored 715, the Platinum variant 702, and the Gold 654. The Hilton Honors American Express card led the no-annual-fee co-branded segment for the second straight year at 669.
In the bank rewards category with annual fees—where high-engagement, financially stable consumers tend to cluster—the American Express Platinum Card scored 720 for the second consecutive year, followed by the Capital One Venture X Rewards at 705 and the Chase Sapphire Reserve at 703. At the other end of the spectrum, cards with no rewards and no annual fee scored 573, significantly below average, reinforcing that cardholders not earning benefits have little reason to report satisfaction.
The findings come as younger generations postpone major life events due to financial strain, and as parents plan to borrow for back-to-school costs. For advisors, these trends underscore the importance of monitoring client credit health, especially as private credit defaults rise and fraud threats evolve.
JD Power's study suggests that card issuers may need to rethink their engagement strategies, particularly for financially unhealthy customers. The drop in proactive fraud outreach and the decline in benefit usage indicate that many cardholders are not receiving the support they need. As the financial health gap widens, the value proposition of credit cards is becoming increasingly polarized, with premium rewards cards serving a shrinking, more affluent segment while others struggle with debt and security concerns.
