Core Insights - The credit card landscape is evolving with trends in interest rates, annual fees, loyalty programs, and interchange fees impacting cardholders in 2026 [1] Interest Rates - The Federal Reserve has reduced interest rates by 25 basis points three times in 2025, lowering the target federal funds rate to a range of 3.5%-3.75% [2] - Average credit card interest rates remain high, exceeding 21% and over 22% for those carrying balances, despite slight decreases in variable APRs [3][4] Annual Fees - Significant increases in annual fees for premium rewards cards occurred in 2025, with the American Express Platinum Card fee rising from $695 to $895 and the Chase Sapphire Reserve fee increasing from $550 to $795 [5][6] - A potential rise in mid-tier rewards credit cards is anticipated, with fees ranging from $250 to $375, offering solid rewards and benefits for travelers [7] Loyalty Programs - Major changes in loyalty programs were noted in 2025, such as Southwest Rapid Rewards eliminating free checked bags and revamping its credit cards [9][10] - More loyalty program refreshes are expected in 2026 from various travel brands and issuer rewards programs, indicating a trend towards enhanced offerings [11] Airport Lounges - Increased popularity of airport lounges has led to changes in access policies, with airlines limiting visits and guest access for cardholders [12][13] - Delta and Capital One have implemented restrictions on lounge access, reflecting a shift in how lounges are managed due to rising leisure travel [14] Balances and Delinquencies - Outstanding credit card balances in the U.S. reached $1.23 trillion, a 5.75% increase from the previous year, while delinquency rates have slightly improved to 2.98% [15][16] - The 2026 Consumer Credit Forecast predicts a modest 2.3% increase in credit card balances, with delinquencies expected to remain stable due to tighter lending standards [17] Interchange Fees - Interchange fees, or "swipe fees," are a contentious issue between banks and merchants, impacting transaction costs and potentially influencing consumer prices [18][19] - The Credit Card Competition Act, aimed at regulating swipe fees, has seen little progress in 2025, leaving its future uncertain [20]