2017 Credit Card Landscape Report – Terms, Trends & More
3:02 AMPosted by: Alina Comoreanu
Understanding the credit card climate is important for two reasons. First, credit card offers change regularly, based on the health of the economy and issuers’ business objectives. So being able to see the bigger picture – averages, trends, etc. – gives you a baseline against which to compare offers. And that will help you find the best credit card deals as well as ultimately save more money.
Monitoring the credit card landscape can also tell you a lot about the health of the U.S. consumer. For example, 0% introductory APRs and initial rewards bonuses dried up during the Great Recession. And the decline in consumer credit quality during that period was a big reason why.
To help people better understand the credit card market, WalletHub tracks interest rates, rewards and fees across credit segments, highlighting the most important trends in our quarterly landscape reports. Below, you can check out our latest findings, including a breakdown of how rates are reacting to the Federal Reserve’s recent moves.
- Q3 Main Findings
- Interest Rates
- Rewards
- Fees
- Debt & Unemployment
- Credit Card Complaints & Satisfaction
- Prepaid Card Complaints
Interest Rates
- The average credit card APR rose 26 basis points during Q3 2017.
- The average APRs on credit cards that require good credit (18.93%) and excellent credit (13.76%) for approval are at the highest point since WalletHub began tracking this data (Q3 2010).
Initial Perks (0% APRs & Rewards Bonuses)
- The rate at which credit card users earn rewards on purchases is at all-time high and trending upward.
- Credit card companies are emphasizing balance transfers over new-purchase financing, offering 0% intro rates for 14% longer and charging slightly lower regular APRs. Balance transfer fees have also gotten 16.18% cheaper in the last 12 months.This discrepancy, which began to emerge in Q4 2013, reflects the fact that credit card debt levels are already nearing record territory.
- Initial rewards bonuses made big moves in the past 12 months, with cash-based bonuses increasing in value by 11.63% and points/miles bonuses falling 12.16%.
Fees
- The average annual fee ($15.82) fell 2.16% during Q3 2017 and is down 3.65% year over year.
- The average foreign-transaction fee (1.64%) has fallen 29% since Q4 2014 and roughly 19% in the past year alone.
- The average cash advance fee is now the greater of $13.72 or 3.62% of the amount withdrawn, which marks a 55% increase in less than five years.
In other words, credit card companies are testing the limits of how much they can exploit cash-hungry customers. And nothing’s stopped them yet.
Complaints & Satisfaction
- The volume of credit card complaints dropped by almost 9% from Q2 to Q3 2017.
- Complaints related to “APR or interest” (+41.5%) and “Advertising and marketing” (+24.8%) increased the most during Q3. Complaints related to “Credit” (-35.9%) fell the most.
- USAA had the most-satisfied credit card customers during the third quarter of 2017, earning a WalletHub Satisfaction Score of 96.49. Synchrony Bank cardholders were least pleased, with the issuer earning a score of just 64.75.
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Excellent Credit | 13.08%(2.43%) | 13.16%(2.49%) | 13.17%(1.15%) | 13.56%(4.15%) | 2.96% |
| Good Credit | 18.16%(2.54%) | 18.14%(2.49%) | 18.50%(3.24%) | 18.66%(4.13%) | 0.86% |
| Fair Credit | 21.47%(5.71%) | 22.00%(3.97%) | 21.96%(4.72%) | 21.97%(4.77%) | 0.05% |
| Secured Credit Cards | 18.79%(0.00%) | 18.65%(-1.32%) | 18.59%(-4.62%) | 18.72%(-3.95%) | 0.70% |
| Student Credit Cards | 17.25%(0.35%) | 17.47%(0.63%) | 17.23%(-1.20%) | 17.63%(1.09%) | 2.32% |
| Business Credit Cards | 16.06%(1.77%) | 16.34%(3.09%) | 16.20%(1.19%) | 16.36%(2.19%) | 0.99% |
| Store Credit Cards | 24.08%(2.25%) | 24.30%(3.17%) | 24.27%(0.76%) | 24.56%(1.96%) | 1.05% |
| Average Interest Rate for All New Offers | 18.00%(2.26%) | 18.16%(3.19%) | 18.14%(0.76%) | 18.36%(1.96%) | 1.18% |
The interest rates in the table above pertain to new accounts opened during the second quarter of 2017. As of November 2016, the average APR for existing accounts with finance charges was 13.61%, according to the most recent data from the Federal Reserve.
Balance Transfer Landscape
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average Length of 0% APR Intro Period (in months) | 11.24(0.27%) | 11.55(3.40%) | 11.18(1.45%) | 10.94(-0.73%) | -2.15% |
| Range of 0% APR Intro Periods (in months) | 6-21 months | 6-21 months | 6-21 months | 6-21 months | N/A |
| Average Regular APR for Cards that have 0% Intro APR on Balance Transfers | 17.33%(1.70%) | 17.51%(1.74%) | 17.34%(0.23%) | 17.34%(0.23%) | 0.00% |
| Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers | 6.45% - 26.24% | 6.45% - 26.49% | 6.5% - 26.74% | 6.7% - 26.99% | N/A |
| Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers | 3.04%(0.00%) | 2.97%(-2.30%) | 2.89%(-4.30%) | 2.87%(-4.97%) | -0.69% |
New Purchase Landscape
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average Length of 0% Intro Period (in months) | 9.81(2.29%) | 9.85(2.60%) | 9.81(2.08%) | 9.71(1.04%) | -1.02% |
| Range of 0% APR Intro Periods (in months) | 6-24 months | 6-24 months | 6-24 months | 6-24 months | N/A |
| Average Regular APR for Cards that have 0% Intro APR on New Purchases | 17.64%(0.74%) | 17.86%(1.30%) | 17.61%(-0.84%) | 17.56%(-1.13%) | -0.28% |
| Range of regular APRs for Cards that have 0% Intro APR on Purchases | 7.15% -29.49% | 7.15% -29.49% | 6.5% - 27.49% | 6.75% - 29.99% | N/A |
Penalty APRs
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average | 27.97%(0.50%) | 28.04%(0.39%) | 26.89%(-3.79%) | 26.93%(-3.65%) | 0.15% |
| Range | 16.99% - 29.99% | 16.99% - 30.49% | 13.49% - 32.99% | 12.0% - 31.99% | N/A |
Cash Advances
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average APR | 22.66%(0.50%) | 22.70%(0.89%) | 22.49%(-0.75%) | 20.21%(-10.81%) | -10.14% |
| APR Range | 6.50% - 36.00% | 6.75% - 36.00% | 6.5% - 36.0% | 5.24% - 36.0% | N/A |
| Average Cash Advance Fee % | 4.00%(0.50%) | 4.01%(-0.25%) | 3.95%(-1.25%) | 3.89%(-2.75%) | -1.52% |
| Average Cash Advance Fee $ amount | $14.71(4.25%) | $14.73(1.52%) | $13.93(-5.24%) | $13.89(-5.51%) | -0.29% |
Cash Back
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average Base Earn Rate | 1.02%(2.00%) | 1.02%(2.00%) | 1.02%(2.00%) | 1.03%(3.00%) | 0.98% |
| Range of Base Earn Rate | 0.25% - 2% | 0.25% - 2% | 0.25% - 2.0% | 0.1% - 2.0% | N/A |
| Average Initial Bonus | $101.48(2.31%) | $102.26(2.71%) | $103.58(4.93%) | $108.84(10.26%) | 5.08% |
| Range of Initial Bonus | $10 - $500 | $10 - $500 | $10.0 - $500.0 | $10.0 - $500.0 | N/A |
Miles or Points
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average Base Earn Rate (in miles or points) | 1.16(-0.85%) | 1.17(0.86%) | 1.18(1.72%) | 1.16(0.00%) | -1.69% |
| Range of Base Earn Rate | 0.01 - 15 miles / points | 0.01 - 10 miles / points | 0.2 - 10.0 miles / points | 0.25 - 10.0 miles / points | N/A |
| Average Initial Bonus (in miles or points) | 15,664(9.36%) | 16,864(11.75%) | 15,579(9.80%) | 14,114(-0.52%) | -9.40% |
| Range of Initial Bonus | 1,000 - 100,000 miles / points | 1,000 - 100,000 miles / points | 1,000 - 100,000 miles / points | 500 - 85,000 miles / points | N/A |
Fees
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 Change | |
|---|---|---|---|---|---|
| Average Annual Fee | $16.42(-5.85%) | $16.78(1.64%) | $16.42(-2.32%) | $16.17(-3.81%) | -1.52% |
| Average Maximum Late Fee | $35.46(-0.42%) | $35.50(-0.20%) | $34.36(-2.77%) | $34.50(-2.38%) | 0.41% |
| Average Foreign Transaction Fee | 2.02%(-6.91%) | 1.97%(-7.51%) | 1.90%(-8.65%) | 1.76%(-15.38%) | -7.37% |
| Foreign Transaction Fee Range | 0% - 3% | 0% - 3% | 0.0% - 3.0% | 0.0% - 3.0% | N/A |
| Average Balance Transfer Fee for Cards with Intro Balance Transfer APR | 3.09%(1.64%) | 3.04%(0.00%) | 2.71%(-10.86%) | 2.60%(-14.47%) | -4.06% |
Debt & Unemployment
| Q2 2016 (vs. last yr) | Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q1 2017 vs. Q4 2016 Change | |
|---|---|---|---|---|---|
| Accumulation | $34.40 billion (5.85%) | $22.1 billion (2.31%) | $60.50 billion (14.80%) | -$31.50 billion (14.13%) | -152.07% |
| Delinquency Rate* | 2.09%(3.98%) | 2.33%(6.88%) | 2.44%(9.42%) | 2.42%(12.04%) | -0.82% |
| Charge-Off Rate* | 3.13%(3.30%) | 2.86%(3.62%) | 3.45%(18.56%) | 3.59%(13.61%) | 4.06% |
*Not seasonally adjusted
Unemployment
| Q2 2016 (vs. last yr) | Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q1 2017 vs. Q4 2016 Change | |
|---|---|---|---|---|---|
| Unemployment Rate | 4.87%(-9.88%) | 4.90%(-5.16%) | 4.70%(-6.00%) | 4.67%(-5.41%) | -0.71% |
Credit Card Complaints & Satisfaction
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 | |
|---|---|---|---|---|---|
| Collection | 25.80%(-36.23%) | 22.66%(-40.58%) | 27.99%(-5.25%) | 29.04%(3.10%) | 3.78% |
| Billing | 16.85%(-26.62%) | 18.48%(7.00%) | 18.53%(8.27%) | 19.06%(10.50%) | 2.87% |
| APR or interest rate | 2.79%(-41.24%) | 3.36%(2.32%) | 2.44%(-33.97%) | 2.80%(-17.48%) | 15.14% |
| Identity theft / Fraud / Embezzlement | 8.48%(-18.20%) | 9.02%(14.61%) | 7.56%(-6.31%) | 4.88%(-40.46%) | -35.41% |
| Closing/Cancelling account | 5.12%(-25.61%) | 5.43%(7.03%) | 5.38%(-5.00%) | 5.47%(6.09%) | 1.67% |
| Credit card protection / Debt protection | 1.81%(-37.71%) | 2.40%(17.34%) | 2.54%(38.55%) | 1.28%(-28.48%) | -49.64% |
| Credit | 4.30%(-30.94%) | 3.84%(-1.87%) | 3.50%(2.87%) | 1.61%(-59.49%) | -54.04% |
| Payoff process | 1.51%(-28.93%) | 1.89%(0.20%) | 1.59%(-11.08%) | 4.20%(92.70%) | 164.50% |
| Fees | 4.60%(-38.87%) | 5.41%(23.06%) | 4.62%(-16.15%) | 7.37%(58.44%) | 59.65% |
| Advertising and marketing | 2.92%(-17.08%) | 2.49%(-7.15%) | 2.08%(-24.43%) | 4.26%(54.67%) | 105.14% |
| Customer service / Customer relations | 3.66%(-25.97%) | 3.28%(-2.74%) | 3.30%(13.96%) | 1.82%(-41.27%) | -44.81% |
| Rewards | 5.97%(146.36%) | 3.16%(20.34%) | 3.16%(26.65%) | 2.26%(-30.76%) | -28.31% |
| Delinquent account | 2.44%(-53.96%) | 2.83%(-25.47%) | 3.07%(-19.07%) | 1.67%(-46.64%) | -45.70% |
Customer Satisfaction With Large Issuers
| Rank | Issuer | WalletHub Satisfaction Score | CFPB Complaints Per $1 Billion Outstanding | Satisfactory Response | WalletHub Reviews |
|---|---|---|---|---|---|
| Max 100 Points | Max 60 Points | Max 20 Points | Max 20 Points | ||
| 1 | USAA | 95.27 | 58.23 | 18.31 | 18.74 |
| 2 | PNC Bank | 93.83 | 57.76 | 20.00 | 16.07 |
| 3 | First National Bank of Omaha | 93.71 | 58.15 | 20.00 | 15.56 |
| 4 | BB&T Financial | 93.44 | 59.02 | 20.00 | 14.42 |
| 5 | Discover | 92.52 | 57.78 | 19.57 | 15.17 |
| 6 | Navy FCU | 92.40 | 57.34 | 20.00 | 15.07 |
| 7 | Capital One | 91.92 | 55.70 | 19.72 | 16.50 |
| 8 | Chase | 91.64 | 57.66 | 19.71 | 14.27 |
| 9 | U.S. Bank | 90.80 | 57.84 | 19.50 | 13.46 |
| 10 | Amex | 89.72 | 58.10 | 18.61 | 13.02 |
| 11 | Bank of America | 89.59 | 57.95 | 20.00 | 11.64 |
| 12 | Barclays | 89.39 | 53.09 | 19.63 | 16.67 |
| 13 | Wells Fargo | 89.17 | 56.84 | 19.36 | 12.97 |
| 14 | Fifth Third Bank | 87.51 | 56.89 | 20.00 | 10.63 |
| 15 | Citibank | 86.99 | 54.73 | 19.38 | 12.87 |
| 16 | TD Bank | 83.70 | 49.29 | 19.65 | 14.76 |
| 17 | Synchrony Bank | 62.87 | 42.66 | 19.53 | 0.68 |
Methodology: WalletHub evaluated consumer satisfaction for 17 of the largest credit card issuers based on total outstanding balances. Each issuer was scored on a 100-point scale according to the following criteria:
- CFPB Complaints Per $1 Billion Outstanding (maximum of 60 points)
- 60 Points: No complaints
- 0 Points: 135+ complaints
- Satisfactory Response Rate To CFPB Complaints (maximum of 20 points)
- 20 Points: 100%
- 0 Points: 50%
- Average WalletHub Rating (maximum of 20 points)
- 20 Points: 5 stars
- 0 Points: 2 stars or below
| Q3 2016 (vs. last yr) | Q4 2016 (vs. last yr) | Q1 2017 (vs. last yr) | Q2 2017 (vs. last yr) | Q2 vs. Q1 | |
|---|---|---|---|---|---|
| Adding money | 4.63%(7.34%) | 3.67%(-61.49%) | 3.00%(-44.05%) | 2.48%(-50.60%) | -17.28% |
| Advertising, marketing or disclosures | 1.93%(-23.33%) | 2.75%(292.01%) | 1.91%(-33.24%) | 1.24%(-64.33%) | -35.01% |
| Fees | 6.95%(-3.40%) | 8.26%(194.00%) | 4.63%(-23.71%) | 3.72%(-67.89%) | -19.71% |
| Fraud or scam | 14.29%(-31.53%) | 19.27%(5.54%) | 20.98%(10.84%) | 18.60%(-10.81%) | -11.37% |
| Managing, opening, or closing account | 26.64%(-29.46%) | 26.61%(-19.37%) | 23.43%(-39.80%) | 30.99%(14.67%) | 32.26% |
| Overdraft, savings or rewards features | 1.16%(61.00%) | 1.38%(37.20%) | 0.82%(-67.30%) | 1.24%(7.02%) | 51.65% |
| Unauthorized transactions/trans. issues | 44.02%(65.36%) | 37.61%(8.39%) | 44.96%(79.84%) | 42.15%(38.18%) | -6.25% |
This report was compiled using data from the 1,000+ credit card offers, monitored by WalletHub on a daily basis. Questions or requests for additional information can be directed to our media department.
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