Credit Card Issuers Must Confront Consumers’ Mounting Debt, J.D. Power Finds
Majority of U.S. Credit Card Customers Carry Revolving Debt
Troy, Mich.: 17 Aug. 2023 - Total U.S. credit card debt increased $45 billion between April and June of this year and has now topped the $1 trillion mark, according to the New York Federal Reserve. For the nation’s credit card issuers that inauspicious milestone, combined with several other consumer behavioral trends, should be cause for concern. According to the J.D. Power 2023 U.S. Credit Card Satisfaction Study,SM released today, 51% of U.S. credit cardholders now carry revolving debt at an average overall self-reported interest rate of 14.8%. As the overall financial health of cardholders deteriorates, customer satisfaction with rewards programs and other perks designed to build loyalty is suffering.
“The pandemic-era savings cushions are gone, the economy is shaky and consumers are leaning more heavily than ever on their credit cards to cover day-to-day expenses,” said John Cabell, managing director of payments intelligence at J.D. Power. “This is a make-or-break moment for card issuers. While high levels of revolving debt and declining financial health typically have a negative effect on cardholder satisfaction and loyalty, issuers do have an opportunity to help customers by encouraging the use of payment plans and taking other steps to build goodwill and trust.”
Following are some key findings of the 2023 study:
- Revolving debt and cardholder financial health in the spotlight: More than half (51%) of U.S. credit card customers are maintaining revolving debt on their credit cards. Among those cardholders classified as financially unhealthy,1 the percentage jumps to 69%. Among those with card debt in the financially unhealthy category, the self-reported interest rate climbs to 16.5%, still lower than many publicly reported averages might suggest. Further, only 11% of financially unhealthy cardholders strongly agree their card helps them control their spending.
- Reward satisfaction suffers: Despite continual efforts by card issuers to build ever more competitive rewards programs, rewards earning has the lowest level of overall satisfaction of the seven factors evaluated in the study. This is driven by less favorable ratings on the amount of rewards earned per dollar spent, especially among cashback cardholders. In fact, the top reason given for switching card providers is seeking a better rewards program.
- Annual fee cards most beloved: Cardholders who say their annual fees average $100 or more have the highest satisfaction with benefits and rewards earning, even more so than those who have cards with lesser or no annual fees. However, cardholders paying a hefty $500 or more in annual fees have more reservations, showing lower satisfaction with the attribute of reasonableness of annual fee, considering the rewards/benefits offered. Airline cardholders also have high rewards and benefits satisfaction, but it is offset by lower satisfaction with terms (e.g., interest rates, credit limits, fees).
- Payment plans can be effective, but usage erratic: Cardholder participation in credit card payment plans is associated with a 102-point increase in customer satisfaction (on a 1,000-point scale). Despite these positive effects, few customers use these issuer-sponsored payment plans, with usage varying widely from a low of 9% to a high of 23%. Payment plans are used most often by cardholders who are financially healthy or overextended. Nearly half (41%) of the most vulnerable cardholders say they would be willing to consider a Buy Now Pay Later plan from a different lender.
- FinTech issuers resonating with consumers: Newer and enticing credit card offerings from FinTech providers such as Chime, Self, Ollo and others are driving consistently higher levels of overall satisfaction and stronger levels of brand trust than are traditional, bank-branded cards. FinTech issuers cater especially well to cardholders who are younger, have credit card debt and are more focused on building credit than on earning rewards.
Study Rankings
American Express ranks highest in customer satisfaction among credit card issuers, with a score of 657. This is the fourth consecutive year in which American Express has won a segment award.2 Bank of America (629) and Discover (629) each rank second in a tie.
Capital One SavorOne Rewards Card ranks highest in customer satisfaction among bank rewards credit cards with no annual fee, with a score of 666. Discover it Student Cash Back (658) ranks second and Blue Cash Everyday Card (American Express) (655) ranks third.
Bank of America Premium Rewards Elite ranks highest in customer satisfaction among bank rewards credit cards with an annual fee, with a score of 712. American Express Gold Card (693) ranks second and The Platinum Card from American Express (687) ranks third.
Platinum Secured (Capital One) ranks highest in customer satisfaction among bank credit cards with no rewards or annual fee, with a score of 620.
JetBlue Plus Card (Barclays) ranks highest in customer satisfaction among airline co-branded credit cards, with a score of 643. Southwest Rapid Rewards Plus Card (Chase) (628) ranks second and Citi American Airlines AAdvantage MileUp Mastercard Card (614) ranks third.
Apple Card (Goldman Sachs) ranks highest in customer satisfaction among co-brand credit cards with no annual fee, with a score of 655. This is the third consecutive year in which Apple Card and issuer Goldman Sachs have collectively won a segment award.3 Hilton Honors American Express Card (638) ranks second, while Amazon Prime Rewards Visa Signature Card (Chase) (636) and PayPal Cashback Mastercard (Synchrony Bank) (636) each rank third in a tie.
The U.S. Credit Card Satisfaction Study, now in its 17th year, was redesigned for 2023. It measures customer satisfaction with credit card issuers by examining seven factors (in alphabetical order): account management; benefits; customer service; new account; rewards earning; rewards redeeming; and terms. The study includes responses from 31,418 credit card customers and was fielded from August 2022 through June 2023.
For more information about the U.S. Credit Card Satisfaction Study, visit https://www.jdpower.com/business/resource/us-credit-card-satisfaction-study.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.
Media Relations Contacts
Geno Effler, J.D. Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]
About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info
1J.D. Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.
2 J.D. Power 2023 U.S. Credit Card Satisfaction Study: Credit Card Issuers segment, which includes issuers with more than 1,000,000 active accounts, excluding co-branded cards. J.D. Power 2020-2022 U.S. Credit Card Satisfaction Studies: National Issuers segment, which included issuers with more than 4,000,000 active accounts. Visit jdpower.com/awards for more details.
3 J.D. Power 2023 U.S. Credit Card Satisfaction Study: Co-Branded Credit Cards segment, excludes airline cards. J.D. Power 2020-2022 U.S. Credit Card Satisfaction Studies: Midsize Issuers segment, which included issuers with 275,000-4,000,000 active accounts. Visit jdpower.com/awards for more details.
2023 Best Credit Card Issuers |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Credit Card Issuers | Score |
American Express | 657 |
Bank of America | 629 |
Discover | 629 |
Capital One | 616 |
Issuer Average | 609 |
Chase | 607 |
Citi | 606 |
Wells Fargo | 602 |
Fifth Third | 584 |
U.S. Bank | 576 |
PNC | 574 |
FNBO | 572 |
TD Bank | 572 |
Merrick Bank | 567 |
Truist | 557 |
Premier Bankcard | 529 |
Credit One Bank | 496 |
---------------------------- | ------ |
USAA^ | 647 |
Navy Federal^ | 642 |
Barclays^ | 577 |
---------------------------- | ------ |
Note: Co-brand cards are excluded from the above rankings. | |
^Brand is not rank eligible because it does not meet study award criteria. | |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |
2023 Best Bank Rewards Credit Cards - No Annual Fee |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Bank Rewards Credit Cards - No Annual Fee | Score |
Capital One SavorOne Rewards Card | 666 |
Discover it Student Cash Back | 658 |
Blue Cash Everyday Card (American Express) | 655 |
Chase Freedom Unlimited | 653 |
Chase Freedom Flex | 650 |
Citi Double Cash Card | 650 |
Active Cash Visa Signature (Wells Fargo) | 644 |
Bank of America Unlimited Cash Rewards | 643 |
Bank of America Customized Cash Rewards for Students | 635 |
Discover it Cash Back | 634 |
Capital One Quicksilver Rewards | 629 |
Segment Average | 626 |
Citi Custom Cash Card | 622 |
Bank of America Customized Cash Rewards Secured | 621 |
Bank of America Customized Cash Rewards | 618 |
Discover it Miles | 618 |
Fifth Third 1.67% Cash/Back card | 615 |
Chase Sapphire | 614 |
Bank of America Travel Rewards | 613 |
Discover it Chrome Gas & Restaurant Card | 606 |
Citi Rewards+ Card | 602 |
Capital One VentureOne Rewards | 597 |
PNC Cash Rewards Visa Card | 597 |
Quicksilver Secured Rewards (Capital One) | 596 |
Amex Everyday Card | 594 |
Discover it Secured credit card | 594 |
Cash Plus+ Secured Visa Credit Card (U.S. Bank) | 557 |
TD Cash Card | 552 |
Enjoy Cash credit card (Truist) | 551 |
PNC Points Visa Credit Card | 547 |
Navy Federal cashRewards^ | 662 |
USAA Preferred Cash Rewards Visa Signature Credit Card^ | 648 |
Navy Federal GO REWARDS Card^ | 646 |
USAA Rewards Visa Signature Credit Card^ | 630 |
---------------------------- | ------ |
^Brand is not rank eligible because it does not meet study award criteria. | |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |
2023 Best Bank Rewards Credit Cards - Annual Fee |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Bank Rewards Credit Cards - Annual Fee | Score |
Bank of America Premium Rewards Elite | 712 |
American Express Gold Card | 693 |
The Platinum Card from American Express | 687 |
Blue Cash Preferred Card (American Express) | 673 |
Capital One Savor Rewards Card | 670 |
Capital One Venture X | 667 |
Bank of America Premium Rewards Visa Signature | 662 |
Chase Sapphire Preferred | 656 |
Chase Sapphire Reserve | 647 |
Capital One Venture Rewards | 639 |
Capital One QuicksilverOne Rewards | 637 |
Segment Average | 611 |
American Express Green Card | 609 |
Citi Premier Card | 607 |
Amex Everyday Preferred Card | 605 |
Credit One Bank Platinum X5 Visa | 504 |
Credit One Bank American Express Card | 501 |
Credit One Bank Platinum Visa | 496 |
---------------------------- | ------ |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |
2023 Best Bank Credit Cards - No Rewards or Annual Fee |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Bank Credit Cards - No Rewards or Annual Fee | Score |
Platinum Secured Card (Capital One) | 620 |
Segment Average | 598 |
BankAmericard | 569 |
Citi Simplicity Card | 559 |
PNC Core Visa Card | 550 |
Citi Diamond Preferred Card | 535 |
USAA Rate Advantage Visa Platinum Credit Card^ | 679 |
Navy Federal Platinum^ | 633 |
Capital One Platinum Mastercard^ | 618 |
---------------------------- | ------ |
^Brand is not rank eligible because it does not meet study award criteria. | |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |
2023 Best Airline Co-Brand Credit Cards |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Airline Co-Brand Credit Cards | Score |
JetBlue Plus Card (Barclays) | 643 |
Southwest Rapid Rewards Plus Card (Chase) | 628 |
Citi American Airlines AAdvantage MileUp Mastercard Card | 614 |
Segment Average | 612 |
Southwest Rapid Rewards Premier Card (Chase) | 610 |
Delta SkyMiles Platinum American Express Card | 608 |
United Explorer Card (Chase) | 606 |
Alaska Airlines Visa Signature Card (Bank of America) | 596 |
Citi / AAdvantage Platinum Select World Elite Mastercard | 589 |
Delta SkyMiles Gold American Express Card | 578 |
AAdvantage Aviator Red Mastercard (Barclays) | 550 |
---------------------------- | ------ |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |
2023 Best Co-Brand Credit Cards - No Annual Fee |
|
Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) | |
Co-Brand Credit Cards - No Annual Fee | Score |
Apple Card (Goldman Sachs) | 655 |
Hilton Honors American Express Card | 638 |
Amazon Prime Rewards Visa Signature Card (Chase) | 636 |
PayPal Cashback Mastercard (Synchrony Bank) | 636 |
Costco Anywhere Visa by Citi | 630 |
Segment Average | 617 |
Amazon Rewards Visa Signature Card (Chase) | 603 |
Sam's Club Mastercard (Synchrony Bank) | 600 |
Capital One Walmart Rewards Card | 594 |
Disney Visa Credit Card (Chase) | 593 |
Kroger Rewards World Elite Mastercard (U.S. Bank) | 593 |
---------------------------- | ------ |
Source: J.D. Power 2023 U.S. Credit Card Satisfaction Study | |
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. |