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American Focus > Blog > Economy > What credit cardholders should know for 2025: Predictions, interest rates, changing benefits, and more
Economy

What credit cardholders should know for 2025: Predictions, interest rates, changing benefits, and more

Last updated: October 4, 2025 6:54 pm
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What credit cardholders should know for 2025: Predictions, interest rates, changing benefits, and more
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As we navigate through 2024, credit card users have enjoyed several opportunities to rack up lucrative rewards and plan noteworthy travels, but they have also confronted escalating debt and shifting interest rates.

Looking ahead to 2025, uncertainty persists around potential changes in policies that could impact credit card fees, rewards schemes, fluctuating interest rates, and the overall value of associated benefits.

Here are some anticipated trends and forecasts for the coming year.

Since the Federal Reserve initiated reductions in its target federal funds rate earlier this year, a decrease in some credit card interest rates has been observed. However, these reductions haven’t sufficiently alleviated the burden for those carrying high-interest credit card debt.

Experts predict further cuts to rates in the new year, though the speed and extent of these cuts remain to be seen.

At the recent 2024 Yahoo Finance Invest conference, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, emphasized that the Fed would observe ongoing data to shape its interest rate policies for 2025. Recent expert insights suggest the frequency of rate reductions may decelerate in 2025.

If the Fed continues to cut rates, a corresponding decline in credit card interest rates is likely. Nonetheless, any impact on your APR may not be substantially significant. According to average credit card rates, which hover around 21%, even sizeable cuts in the Fed’s target rate are not a reason to delay paying off credit card balances, as waiting could lead to mounting debt.

While interest rates fall, credit card debt is on the rise, with the New York Federal Reserve’s latest report on Household Debt and Credit indicating an outstanding $1.17 trillion in credit card debt, marking an 8.1% increase from the previous year. Although credit card delinquencies have shown slight improvement, 8.8% of American card balances fell into delinquency (over 30 days late) in Q3 of 2024.

“Looking forward to 2025, we may continue to see this upward trajectory in credit card balances,” Barry Coleman, vice president of program management and education at the National Foundation for Credit Counseling, stated in an email to Yahoo Finance.

Insights from the 2025 Consumer Credit Forecast from TransUnion indicates that both balances and delinquencies will rise, although at a reduced rate.

The credit bureau anticipates credit card balances will grow by 4.4% year-over-year by the close of 2025, a significant decline from 18.5% in 2022 and 12.6% in 2023. Similarly, delinquency rates are expected to escalate at a slower pace in 2024 and 2025 compared to previous years.

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The trajectory for credit card debt will be influenced by changing economic factors, Coleman adds, such as interest rate variations and consumer spending behaviors. “Moderating inflation could lessen the dependency on credit cards for daily household expenses. Additionally, as credit card issuers are not drastically tightening lending criteria, credit utilization may remain elevated.”


  • Current credit card interest rates [2025]: How do your cards stack up?



  • What are junk fees — and how can you avoid them?



  • How to safeguard your credit card rewards amid rising customer complaints

Several travel programs have announced forthcoming changes that will impact cardholders in 2025.

First, American Express will modify access for cardholders to Delta SkyClubs. Beginning February 1, 2025, the following limits will be instituted for certain cardholders:

  • Delta SkyMiles® Reserve American Express Card and Delta SkyMiles® Reserve Business American Express Card: Cardholders will be limited to 15 visits to Delta SkyClub per Medallion year (unlimited access can be earned by spending $75,000 on the card annually). This is an increase from the previous 10 visits allowed.

  • The American Express Platinum Card® and The Business Platinum Card® from American Express: Access will be limited to 10 Delta SkyClub visits per Medallion year (unlimited access also achievable after spending $75,000 annually). This is a rise from the previous allowance of six visits.

Alaska Airlines is also updating its loyalty program. The revamped rewards program will introduce new milestones to achieve elite status, alongside the ability to earn elite-qualifying miles on award flights with Alaska and partner airlines.

Additionally, cardholders will receive further benefits. Starting January 1, 2025, for every $3 spent on the Alaska Airlines Visa® credit card, cardholders will obtain an elite-qualifying mile (capped at 30,000 EQMs per year).

For those holding Capital One cards, access to Capital One Lounges will be limited come 2025. Starting January 1, users will no longer have free access to these lounges with a Capital One Venture Rewards Credit Card or a Capital One Spark Miles for Business card, although they can still pay $45 for lounge access instead of the standard $90 fee.

Seek out the ideal card for your travels in 2025: The best travel credit cards

Cardholders remain vulnerable to identity theft and the creation of new accounts using their information, a trend that is expected to persist in 2025. Victims of account fraud can face significant financial losses and potentially damage their credit scores. Data breaches also heighten the susceptibility to identity theft, where compromised usernames and passwords can lead to unwarranted account creations.

“These risks are significant and will continue to be a concern into 2025 and beyond,” stated Eva Velasquez, president, and CEO of the Identity Theft Resource Center.

Additionally, while advances in mobile wallets and contactless payment methods have enhanced in-store transaction safety, vigilance is crucial for safeguarding access to card information.

“We are also observing a resurgence of traditional theft tactics,” Velasquez noted, citing incidents of physical card theft, which can occur from wallets or even through mail interception as persistent issues.

Discover more: 6 tips to avoid credit card fraud and scams

As cardholders might see a marginal relief from high interest rates, they will still confront various fees in the upcoming year.

Interchange fees have become a focal point of discussion between banks and merchants that accept credit card payments. These “swipe fees” are paid by merchants to credit card networks for transaction processing.

Major credit card networks in the U.S., primarily Visa and Mastercard, along with American Express and Discover, frequently adjust these fees. While such fees may not always have a direct effect on cardholders, they can lead to increased prices from merchants. Conversely, these fees might offset costs of rewards and benefits offered by issuers.

The proposed Credit Card Competition Act, introduced in Congress in 2022, has the potential to modify swipe fees in the future by compelling credit card issuers to facilitate transactions over at least two networks (one of which must not be Visa or Mastercard). Progress on this bill has been slow, with no significant movement or voting scheduled so far this year, despite being discussed in a Senate Judiciary Committee hearing in November 2024.

Related: Credit card fees explained — 8 types you should know

Anticipate potential hikes in annual fees in the near future as well. Though there’s no guarantee, as the costs of administering rewards and benefits rise, so may your annual fees.

Indeed, we already witnessed an uptick in annual fees during 2024. A notable example is the American Express® Gold Card, which saw its fee rise from $250 to $325 (see rates & fees), while also adding several new features to assist informed cardholders in offsetting costs.

Anticipate the emergence of more premium credit card offerings, particularly within co-branded travel cards. Alaska Airlines has hinted at launching a new premium credit card next summer.

Moreover, in November, Delta Air Lines President Glen Hauenstein suggested the possibility of future premium card options within its partnership with American Express: “We have the Reserve card available, but is there a potential for an even more advantageous card? We will continue to innovate.”

Explore the best credit cards with no annual fee

In 2024, significant changes occurred among major banks and travel firms, including Capital One’s proposed acquisition of Discover and the merger of Alaska Airlines with Hawaiian Airlines. The full repercussions of these developments have yet to unveil but may become clearer in the coming year.

For instance, integrating Capital One cardholders into Discover’s payment network could significantly enhance their network size relative to key competitors (Visa, Mastercard, and American Express). Nonetheless, this acquisition is still under regulatory scrutiny and not finalized.

Currently, Capital One has stated it will maintain its Discover credit card offerings, although the post-acquisition landscape may lead to new card products and adjustments to existing card features.

Read more: How Capital One’s acquisition of Discover could affect you

While Alaska Airlines and Hawaiian Airlines aren’t direct credit card issuers, each operates loyalty programs and co-branded credit cards. Their loyalty programs are set to merge at a future date, with additional details expected to be revealed in mid-2025. Current cardholder benefits (such as free checked bags, companion fares, etc.) will remain applicable only for the airline where the card was issued. In the interim, miles can be transferred at a 1:1 ratio between the programs, and there’s an instant status match available for elite-qualifying miles from both programs.

Further institutional changes could also be forthcoming—recent reports indicated JP Morgan Chase is in discussions with Apple to potentially take over its credit card services currently offered through Goldman Sachs.

This article was edited by Alicia Hahn


Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions are solely those of Yahoo Finance and not those of any other entity. Details on financial products, including rates and fees, are accurate as of the publish date. All products and services are presented without warranty. Please check the bank’s website for up-to-date information. This site does not include all currently available offers. Approval for any financial product is not guaranteed or implied by your credit score alone.

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