More than half of individuals utilizing credit cards are sustaining outstanding debt
In the latest J.D. Power 2025 U.S. Credit Card Satisfaction Study, American Express has once again emerged as the leading credit card issuer, securing the top spot for the sixth year in a row. The study, based on surveys from over 37,000 credit card customers between June 2024 and June 2025, reveals a growing divide in satisfaction between financially healthy and struggling credit card users.
The study found that customers paying high annual fees of $500 or more for premium cards reported higher overall satisfaction. Premium cards, such as American Express's Platinum Card, deliver stronger rewards and benefits that offset the cost for financially healthier consumers.
Financial health status appears to be the strongest determinant of credit card satisfaction. Customers classified as financially healthy—those with strong creditworthiness, good spending to savings ratios, and safety nets like insurance—have significantly higher satisfaction levels than financially struggling users.
Interestingly, more than half of cardholders (53%) are carrying revolving debt, and those without such debt tend to be more satisfied. Debt burdens, especially at high interest rates averaging over 20%, negatively impact satisfaction.
The Capital One Savor Rewards card was the highest-rated no-fee rewards card in the study, while the Capital One Platinum Mastercard was the highest-rated no-fee, no-reward card. The Citi/AAdvantage Executive World Elite Mastercard was the highest-rated airline co-branded card, and the Hilton Honors American Express Card was the highest-rated co-branded no-fee card.
The trend of using Buy Now, Pay Later (BNPL) programs suggests that many households are facing financial strain due to stagnant incomes and volatile prices. Thirty-seven percent of credit card users say they would consider switching to a different lender for BNPL services.
Scores dropped sharply, by an average of 39 points, when surcharges were involved, leading many to opt for alternative payment methods. Approximately 65% of cardholders reported being charged extra for paying with a credit card (merchant surcharges).
John Cabell, managing director of Payments Intelligence at J.D. Power, stated that satisfaction is lower among a large portion of credit card customers, particularly those with financial stress. The study indicates a need for credit card issuers to offer tailored products and support aligned to these distinct consumer profiles in the U.S.
In summary, customers who are financially healthy, avoid revolving debt, and use premium reward credit cards tend to report higher satisfaction, while those struggling financially, often balancing higher debt and facing economic headwinds, have lower satisfaction with credit card products and services.
Personal-finance decisions significantly influence credit card satisfaction. For instance, financially healthy individuals, those who avoid revolving debt and utilize premium reward credit cards, tend to express higher levels of satisfaction. On the other hand, those facing financial stress, carrying high debt levels, and dealing with economic pressures often report lower satisfaction. Furthermore, advancements in technology, such as Buy Now, Pay Later programs, are indicative of financial strains among households, with a third of credit card users considering switching lenders for these services.
