Credit Card Rankings Shift as Competition Intensifies
American Express and Chase have long vied for the title of America’s most favored credit card. However, recent updates indicate that new contenders are altering the landscape.
Bank of America has made a notable leap from fifth to second place, while Capital One secures the third position in JD Power’s latest customer satisfaction survey.
Chase now finds itself in fourth place, with Amex retaining its top ranking. The annual survey evaluates various issuers across seven criteria, such as compensation, customer support, account management, and fees.
Besides naming the overall best cards across categories—from airline rewards to no-annual-fee options and premium cards—the study also identifies leaders within each category.
Capital One’s Savor Card has attained the highest ranking among annual reward cards.
For premium options, annual fees range from $95 to $795, with Amex’s Platinum card regaining its top position after dropping last year. Chase’s Sapphire variants have slipped to fourth place.
This survey highlights the shifting dynamics as consumers face financial challenges. About 53% of cardholders carry a monthly balance, and 56% are considered “financially unhealthy.” Interestingly, average monthly spending on credit cards has dipped to $1,058 from last year’s $1,126.
Still, John Cabell from JD Power points out that satisfaction levels have improved among those who pay off their balances in full.
Rewards for Credit Cards with Fees
The American Express Platinum Card stands as a leading reward option, having jumped to first place after previously being ranked fourth.
Chase’s Sapphire variants have dropped from third place last year to fourth this year.
Rewards for Credit Cards without Fees
Capital One has maintained its top position for the second consecutive year.
In contrast, Chase’s Freedom Flex has fallen from second place to fifth.
Airline Co-Branded Credit Cards
Major airlines collaborate with banks to create their own credit cards. Last year, the Southwest Rapid Rewards Premier Card achieved the highest ranking in its partnership with Chase. However, it has since dropped to ninth place.
The American Airlines AAdvantage Executive World Elite Card, issued by Citi, also holds a significant position.
Other Co-Branded Credit Cards
The Hilton Honors American Express card has emerged as the leading co-branded option, while Apple’s card issued through Goldman Sachs also ranks notably.
Costco’s Citi Visa has outperformed Apple’s offering. As Goldman Sachs shifts away from consumer banking, Apple’s future in the credit card sphere is becoming unclear.
Meanwhile, a recent report suggests that the value of credit card reward points is slowly declining due to ongoing inflation. Reward points have typically been valued at one cent, but since 2018, this amount has diminished by about 20%, according to the Bureau of Labor Statistics.
What this means is that if you had earned 50,000 points with a major issuer in 2020, they’re now worth approximately 41,300 points if not spent yet.
The card issuers are also selective about what they provide. Starting in February, Venture X cardholders will no longer be able to extend Capital One Airport Lounge Access for guests and additional cardholders, a move aimed at addressing overcrowding. In contrast, Amex has introduced digital waitlists in lounges to manage long lines.
Additionally, Citibank is preparing to enter the premium travel card market with the forthcoming Strata Elite, aimed at affluent travelers. This card, set to launch later this year, will compete directly with Chase’s Sapphire Reserve and American Express’s travel-focused Platinum Card.
