JD Power 2026 Study: 60% of U.S. Credit Card Customers Now Classified as Financially Unhealthy

Financial health among U.S. credit card customers is deteriorating, with 60% now classified as financially unhealthy. For fintech professionals, this signals a growing K-shaped divide where premium cardholders thrive on rewards while vulnerable segments struggle with debt and rising fees, demanding a strategic pivot in how issuers manage risk and customer engagement.

What was announced

The JD Power 2026 U.S. Credit Card Satisfaction Study reveals a significant shift in the American credit landscape. While the average monthly spend has climbed by $109 to reach $1,167, this growth masks a deepening crisis for a majority of cardholders. The share of customers considered financially unhealthy rose from 56% last year to 60% today. Despite this, 52% of cardholders continue to carry a balance, with 30% of those debtors owing $2,500 or more.

The study highlights a stark contrast in satisfaction levels across different card tiers. The overall satisfaction score sits at 613 on a 1,000-point scale, but airline co-brand cards lead the market with a score of 641. Premium cards with annual fees exceeding $300 are seeing increased value satisfaction even after fee hikes. Conversely, cards with no rewards or fees lag behind significantly at 573. Digital adoption is rising, yet security concerns are mounting; fraud incidence has reached 13%, while proactive issuer outreach to flag suspicious activity has slipped to 38%.

In terms of specific rankings, American Express secured the top spot for the seventh consecutive year with a score of 668, followed by Chase at 635 and Bank of America at 630. Notable product winners include the Chase Freedom Flex for no-fee rewards and The Platinum Card from American Express for annual-fee rewards.

"The widening gap in financial health means value perception with credit cards is tilted toward debt-free rewards hunters. 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."

John Cabell, managing director of payments intelligence at JD Power.

The companies involved

The study evaluates the heavyweights of the U.S. payments industry. American Express, which leads the satisfaction rankings, maintains a dominant position in the premium and co-branded sectors. Chase, the consumer banking arm of JPMorgan Chase & Co., continues to compete aggressively in the rewards space with its Freedom and Sapphire lines. Bank of America remains a top-three contender, leveraging its massive retail footprint and integrated rewards programs.

JD Power, the global data and analytics firm behind the study, provides the industry benchmarks for consumer intelligence. Other major players mentioned in the market context include Citi, Discover, Capital One, and PNC. These institutions are currently navigating a complex environment where traditional lending profitability is being tested by the increased sensitivity of financially overextended customers. As the market bifurcates, these issuers are forced to balance the high-touch service expected by premium cardholders with the cost-sensitive requirements of the broader, more vulnerable population.

What FF News has reported before

FF News has closely tracked the strategic moves of the top-ranked issuers. We recently covered how Bank of America and USAA Strike Major Patent Cross-License Deal to Fuel Banking Innovation, highlighting a focus on intellectual property in the digital age. The bank's momentum in the rewards space was also evident in our report on Bank of America Sees Massive Adoption with 3 Million New BofA Rewards Enrollments. Additionally, we have reported on the infrastructure side of the industry, such as when Swift Revolutionizes US International Money Transfers with Bank of America and J.P. Morgan, and Bank of America's internal growth through bolstering regional investment banking with nine senior hires.

What this means

This data confirms that the "rewards arms race" is reaching a breaking point. While high-earners are insulated and happy to pay $300+ fees for travel perks, the 60% of customers who are financially unhealthy represent a growing systemic risk. Issuers are under immense pressure to improve fraud detection; a drop in proactive outreach while fraud rises is a dangerous combination that could erode brand loyalty faster than any rewards program can build it. The industry should watch for a shift toward "financial wellness" tools as a retention strategy, as the current reliance on surcharge-sensitive, debt-laden customers is unsustainable in the long term.