Given the proliferation of credit cards, it stands to reason that the best card for any individual user will depend on their habits and needs. One of the most significant factors is generational: a consumer’s age can influence not just the benefits they seek from a card but also their personal spending habits.
With that in mind, Javelin Strategy & Research’s 2024 Mass-Market Credit Cards Scorecard highlights the best cards by age group in addition to the overall winners. “If you are a card issuer, you’re going to want to develop certain product lines for certain segments,” said Ben Danner, Senior Analyst, Credit and Commercial at Javelin Strategy & Research and author of the scorecard. “Your whole card product portfolio doesn’t have to—and shouldn’t—target a mass-market audience.”
The scorecard evaluates general-purpose credit card products from 10 major issuers. It considered 53 credit card products, supported by consumer survey research findings, to spotlight both cards with and without an annual fee. The top selections balance rates, terms, and fees, with a rewards package designed to appeal to the general mass-market customer.
And the Winners Are…
Javelin’s top pick with an annual fee was the TD First Class Visa Signature Card, while the U.S. Bank Altitude Connect Visa Signature Card won best overall card with no annual fee. TD First Class Visa stood out with its ultra-low purchase APR rate, while the recently enhanced U.S. Bank Altitude Connect Visa offered a strong rewards package in high-value everyday spending categories such as dining, grocery, and travel.
“We were looking for a mass-market card that is going to be the best product for the general consumer,” said Danner. “The average consumer is going to look at things like the rates, terms and fees, as well as the rewards. But the TD First Class Visa had such a low rate, at just 18.4%, that it really stood out above the rest. That’s a very low rate for a rewards card.”
In second place among the annual fee cards was the City Strata Premier. It boasts a very strong introductory offer and a solid rewards package, which is typical of cards with an annual fee.
Among cards with no annual fee, the top selection was the U.S. Bank Altitude Connect Visa signature. It stood out for its strong rewards and the absence of foreign transaction fees. U.S. Bank enhanced its Altitude products this year, most notably by removing the annual fee from the Altitude Connect card. “Taking the annual fee away and still having a card with such a strong reward feature set really made it shoot to the top,” said Danner.
The Bank of America Travel Rewards card finished second in the no-annual-fee category. The same card also ranked first for the best cards for Gen Z.
Inclusion Criteria
The scorecard includes general-purpose bank card with no annual fee and those with a yearly fee of up to $120. It did not include co-branded cards, such as the Apple Card, and private label cards, like the Amazon Store Card.
Data from Javelin’s 2023 North American PaymentsInsights consumer survey was used to develop the weighting for this analysis. Consumers were asked which factors were most important when deciding which credit card to apply for. Unsuprisingly, many prioritized rewards programs, with the annual fee also being a key consideration.
Javelin applied some of its own analysis to the rewards programs. Its research has shown that some of the most touted benefits may not be universally applicable.
“When you’re evaluating the rewards earning potential on some of these card products, things like grocery and dining are high value categories for consumers,” said Danner. “Cards that maximize these categories with rewards benefits are going to earn a lot more points and be a success with consumers. Whereas some of these cards add on things like a 2% gas benefit or something. Well, you know, for someone like me that works from home, a 2% rebate on gas isn’t going to help them much.”
A Focus on Generations
Finally, the scorecard is segmented by generational weighting, as age groups have different purchasing habits, and special offers and rewards hold different value for different buyers. For instance, Gen Z spends more on shopping and dining, while boomers spend more on fuel and hotel lodging. Card plans that reward specific categories will appeal to different demographic segments.
“There are generational shifts that we thought were relevant and important,” said Danner. “This is supported by our own primary data, which shows different preferences by age. Younger generations are going to be more rate conscious. The Gen Z customer is going to be looking for something with a lower purchase APR and better rates and terms.”
“Those customers would have a higher likelihood of carrying revolving debt, whereas some of your older customers are going to be a little bit more financially stable, less likely to be revolving, and are just focused on maximizing their rewards to the fullest extent,” he said.
There are expenditure differences too. The Bureau of Labor Statistics segments consumer spending patterns, and these factors strongly impact rewards preferences. Younger customers in college likely won’t travel much, so they may not benefit from the rewards features of some cards. However, a millennial or Gen X customer with a full-time job and career might want to travel once a year and could benefit from a card like the Chase Sapphire, which allows them to build up travel points.
“Make sure you have a card that is answering the basic needs of the category,” Danner said. “Take all this into account when you’re trying to develop a card product that’s aimed towards your mass-market general audience. But also take into consideration the targets for these card products based on demographic information. The more data that you have when you’re designing these things, the better.”