According to the Federal Reserve, around 82 percent of American adults have at least one credit card. But the credit card landscape has become increasingly complex.
Credit card debt has become a growing problem, as 51% of cardholders have revolving debt, according to JD Power’s latest consumer surveyA difficult macroeconomic environment is putting pressure on consumers: higher interest rates and dwindling savings are causing Americans to use their credit cards differently and have new demands.
“Cardholders face increasing financial pressure every day, manifesting in the form of high revolving credit card debt, declining financial health and a move away from points/miles cards,” said John Cabell, managing director of payments intelligence at JD Power.
“However, this is a difficult market for credit card issuers because, although overall credit card customer satisfaction ratings remain largely unchanged, the customer base has actually split into a subgroup that feels squeezed by economic pressures and a subgroup that does not,” he added.
More than half of cardholders are now considered “financially unhealthy,” JD Power found. This has led to a shift away from rewards cards: Use of points or miles cards by financially unhealthy cardholders fell from 31% in 2023 to 27% this year, while use of cashback and stored value cards continued to rise.
For the past 18 years, JD Power has conducted its US Credit Card Satisfaction Study, which measures customer satisfaction with credit cards based on seven factors: account management, benefits, customer service, new account, rewards acquisition, rewards redemption and terms. The study includes responses from 38,852 credit card customers from June 2023 to June 2024.
Whether you’re looking for travel points, cash back, rewards, or just credit, there’s a credit card for that. But with so many options from different banks and issuers, finding the right card can be difficult. But it doesn’t have to be.
Read on to see JD Power’s top-rated credit cards.
