Revolving Debt Becomes the Norm for U.S. Cardholders

More than 50% of American cardholders already hold revolving debt — and a whopping 56% are financially unhealthy, according to the newest J.D. Power findings.

That top-line figure represents a strategic inflection point facing card issuers who must contend with widening gaps in satisfaction, loyalty, and revenue behavior in their cardholder groups.

Overall Satisfaction is holding steady, ticking up just one point to 611 on a 1,000-point scale. But that modest gain hides a divide: Financially fit cardholders say their satisfaction is on the rise, while those carrying revolving balances continue to struggle.

Revolvers now dominate the landscape, and their dissatisfaction is clearest around balance transfers, credit limits, and digital access. Meanwhile, transactors are seeing rising satisfaction scores, creating tension in how issuers design products that serve both groups effectively.

The study also points to declining average monthly card spend — down $68 year-over-year — and a simultaneous rise in Buy Now Pay Later (BNPL) adoption. Prime-focused issuers may also be quietly tightening credit access, especially as revolver behavior expands and underwriting risk increases. 

Many prime consumers now stack multiple cards, shifting their loyalty toward products with strong travel perks or introductory rewards, while experimenting with BNPL as a supplemental financing option.

Taken together, fluctuating brand rankings and uncertainty around AI suggest that fundamental shifts are underway in how customers engage with credit cards.”

The survey, which polled over 37,000 cardholders, found that financially fit consumers — those with the best credit scores, savings, and debt-to-income ratios — saw satisfaction increase by nine points, while transactors — those who pay off their balances monthly — gained four points.

Financially unhealthy cardholders — those carrying card debt or struggling to make payments — saw their satisfaction drop by one point.

The widest gap is in account management and credit flexibility. The message for issuers: customize offerings. Revolvers want clear service and guidance; transactors want frictionless use and better rewards.

The challenge is making both experiences frictionless. Issuers that can automate the management of credits, simplify transfers, and integrate forgiveness into their user interface will be better placed to boost satisfaction across the board.

Cardholders spent an average of $1,058 per month in 2025, down from $1,126 the year prior. At the same time, 20% of respondents said they used a BNPL plan, and 37% said they would consider using BNPL through another lender — up from 34% in 2024.

The shift threatens issuers on two fronts: interchange income may shrink, and card spending could slow. To hold market share, issuers will need to respond with clearer balance and APR disclosures, installment plan features, and better financial education.

One of the surprising results: cardholders who are charged annual fees are happier overall than cardholders who are using no-fee cards. Even cardholders who are charged over $500 annually were generally pleased, even though they had higher reservations about fee fairness.

Annual fees have received high satisfaction scores among cardholders.

Value perception is key. Prime customers, in particular, tend to expect top-tier rewards, seamless travel benefits, and highly responsive service. Issuers that charge fees need to clearly communicate benefits and provide a premium experience that’s worth the price.

For high-end cards, rewards dashboards, travel perks, and concierge service can make a difference — if consumers are aware of them.

The study also saw movement in card brand rankings. American Express retained its top spot among issuers for the sixth consecutive year, scoring 643. Bank of America and Capital One followed at 622 and 621, respectively.

Meanwhile, Apple Card slipped to third place in the no-fee co-branded category, behind Hilton Honors AmEx and Costco Anywhere Visa by Citi.

That decline is surprising for a tech product that once dominated its field, underscoring how quickly consumer interest wanes without steady innovation and messaging.

J.D. Power found that only 11% of customers fully understand how their card issuer uses AI. Just 13% feel that the issuer has communicated it clearly. Yet 33% of cardholders believe AI could improve fraud prevention and data security.

Issuers who make AI understandable — through onboarding, education, and straightforward communication — can earn an advantage in trust. With security remaining top of mind for most cardholders, especially those in the subprime space, AI transparency may become a differentiator.

Moreover, surcharging remains another significant pain point. Sixty-five percent of consumers were hit by a fee charged by a merchant for the use of a credit card, and those interactions averaged a 39-point satisfaction drop. As a remedy, 81% of those shoppers switched payment types.

Merchant partners, surcharge fee locators, or real-time alerts can help consumers escape surcharge pain, and such issuers may establish greater daily-use loyalty. 

Aggressive spending is waning, revolving balances are rising, BNPL is capturing greater share, and digital experience remains both critical and under-optimized.