2026 Credit Payments Trends

Credit cards are resilient, and over the past decade, they have enabled consumers to borrow and transact despite a pandemic, rising interest rates, stubborn inflation, and an uncertain economic climate. Average FICO Scores for the United States are 715, two points lower than the prior year. If all goes as planned, 2026 is expected to deliver steady growth and moderate risk for credit cards. Expect to see three unfolding trends. 

A great divide between large and small issuers. Operational performance has diverged between large and small banks, as evidenced by significant gaps in charge-off rates. Current numbers indicate that small issuer charge-offs are unacceptably high, posing a challenge to their profitability. As a result, the industry may experience consolidation in 2026. 

Credit card rewards are changing. Premium credit card offers, which often come with hefty annual fees, target high-quality cardholders with generous point offers. Concurrently, the industry grapples with the stalled Card Competition Act of 2023, which aims to reduce interchange revenue, the primary source of reward payouts. Cardholders recognize that their transactions have value to merchants and lenders, and they want a share of the benefits these transactions provide. 

AI will make credit cards even smarter. Credit card technologies helped the industry gain scale through machine learning throughout the credit cycle. As artificial intelligence emerges, expect to see more personalization, the connection of broader data points, and cross-product integration, if AI lives up to its hype.