Over 50% of Credit Card Users Maintain Revolving Debt, Few Use Payment Plans but Fintechs Resonate

Credt card debt is now over $1 trillion, having increased by $45 billion from April to June this year. This has led to some concerning as well as interesting trends, according to a report by JD Power.

In the Credit Card Satisfaction Survey, results indicate that 51% of credit card holders are maintaining revolving debt. The average interest on this debt is pegged at 14.8%.

When looking at just cardholders that are deemed “financially unhealthy,” this percentage of revolving debt jumps to 69%.

Unsurprisingly, these unhealthy cardholders do not believe these cards encourage good financial decisions.

Regarding payment plans, a fairly recent innovation for cardholders to handle card debt more like a loan – usage is “erratic,” varying from 9% to as high as 23%, with usage mainly by “financially healthy” or “over-extended” individuals.

The JD Power report also shares that Fintechs are “resonating” with users naming Chime as well as Self, Ollo, and Aspire, as these card issuers are said to provide higher customer satisfaction. This holds true more so for a younger demographic.

Overall, American Express wins the prize for highest customer satisfaction.

The Apple Card, in partnership with Goldman Sachs, is rated the highest in customer satisfaction among co-branded credit cards with no fee. In this category, Apple is followed by:

  • Hilton Honors American Express
  • Amazon Prime Rewards Visa (Chase)
  • PayPal Cashback Mastercard (Synchrony Bank)

Another note of interest, cards with an annual fee are ranked the highest, topping the fee-free cards.



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