Episode Overview

Podcast: NerdWallet’s Smart Money Podcast
Episode: Credit Cards in 2026: Big Card Changes Are Rolling Out — Here’s What to Re-evaluate Now
Date: January 12, 2026
Hosts: Sean Pyles, CFP®, and Elizabeth Ayoola
Guest: Caitlin Mims, NerdWallet Credit Card Expert

This episode dives deep into how credit cards are changing in 2026, covering updated features, interest rates, annual fees, spending trends, the “best of” credit cards, and actionable advice for maximizing value while aligning money habits with personal values. The discussion also examines broader personal finance resolutions for the new year, focusing on intentional spending, generosity, and practical saving strategies.

Value-Driven Spending in 2026

Segment: Personal Finance Resolutions (02:14–15:24)

Setting Intentional Money Goals

• Sean and Elizabeth reflect on changes they want to make in their 2026 spending to better align with their values.
  • Spend Less:
    • Sean: Reducing money spent supporting billionaires and large corporations. “I'm going to try to stop using services from companies that are funding and expanding our AI-driven surveillance states.” (03:35)
    • Elizabeth: Cutting down on childcare spending by exploring babysitting co-ops and reducing impulsive online purchases. “I realize that when I'm idly shopping online, I spend more money on things that don’t matter to me.” (07:13)
  • Spend More:
    • Sean: Increasing support for marginalized communities—especially immigrants and trans people—through regular donations and mutual aid. “I also want to be more generous with one-off contributions and GoFundMe.” (09:03)
    • Elizabeth: Prioritizing random acts of kindness and giving gifts without occasion, as well as more frequent donations for people in need.
  • Spend the Same:
    • Elizabeth: Continuing to budget for travel and dining out, emphasizing enjoyment over restriction.
    • Sean: Maintaining or slightly increasing his restaurant spending to foster relationships.

Notable Quote:

• Sean: “It’s all about staying organized, right? That’s the whole purpose, is you want to make sure that you’re saving enough for each distinct goal and not just taking from one account to fuel another and then kind of muddying the waters a bit.” (11:32)

The State of Credit Cards in 2026

Segment: Credit Card Trends and Expert Interview (18:43–35:21)

Major Changes in 2025–2026

Guest: Caitlin Mims, NerdWallet credit card expert

The Year of “Chaotic” Changes (19:24–20:11)

• Caitlin: “Chaotic. Issuers seem to be refining who they view as their ideal customer. Big changes to almost every class of card, especially travel cards.”
• Airline and general travel cards, like Amex Platinum and Chase Sapphire Reserve, underwent major overhauls.
• New cards launched for fair/bad credit, plus refreshed features on existing ones.

Highs and Lows in the Credit Card Industry (20:12–21:13)

• More perks, higher rewards, increased consumer-friendly benefits.
• Pre-approval checks more widely available—a “high” for transparency.
• Major downside: “Issuers are increasing fees and offering a lot of niche perks that might not be relevant to everyone.” (20:28)
• Example: Perks like Peloton memberships offered, but not useful for all.

Consumer Patterns: Buy Now, Pay Later and Debt (21:19–23:46)

• Trend: Buy Now, Pay Later (BNPL) became standard, integrated into credit cards (e.g., US Bank card auto-installments).
• Elizabeth: “You start buying more things... then you're just paying things for a long period of time and doing what you call Buy now, pay later loan stacking.” (22:02)
• Caitlin: Flexible when used occasionally, but adopting as a regular strategy is risky—monthly fees add up, and overspending is common. “If you feel like you need to use these programs for everyday purchases, I highly recommend looking at your budget.” (22:55–23:27)

Debt and Delinquencies (24:00–25:20)

• Credit card debt rose, especially for low/middle-income earners, but steadied for higher incomes; delinquency rates dropped slightly.
• Possible explanations: Minimum payments more common, or issuers less willing to approve risky borrowers.

Interest Rates & The Federal Reserve (25:20–26:04)

• Credit card APRs are variable and tied to Fed rates, but rate cuts bring minimal real-world relief (only minor reductions in APR).
• Example: A 20% to 19.75% drop saves just a few dollars over years.

Strategies for Tackling Credit Card Debt (26:23–27:28)

• Top tip: 0% balance transfer offers are the best tool for paying off debt.
• Look for retention balance transfer offers on existing cards.
• Can’t transfer a balance within the same issuer; must switch brands.
• Debt consolidation loans as a backup—lower interest than credit cards, but usually not as good as a 0% card.

Credit Card Fees, Value, and 2026 Outlook

Segment: Fees, Benefits, and Decision-Making (27:28–31:25)

Annual Fees and Value Calculation

• Substantial annual fee increases for premium cards (e.g., Amex Platinum, Chase Sapphire Reserve).
  “Allegedly adding more value, but not everyone can justify $800–$900 a year.” (27:48)
• Some sub-$100 annual fee travel cards (Chase Sapphire Preferred, Capital One Venture) are losing benefits, indicating possible future fee changes.

Caitlin’s Approach:

• Assess both value and effort. Many cards now offer “coupon book” benefits requiring ongoing active use (e.g., monthly or quarterly credits instead of simple annual credits).
• If using the perks takes too much work or doesn’t match your lifestyle, reconsider the fee.
  Example: “If you don’t eat out often... this [Resy] credit isn’t that valuable for you.” (29:46)
• Don’t be afraid to ask for retention offers if you’re considering closing or downgrading.

The NerdWallet “Best Of” Awards for Credit Cards

Segment: Best Cards of 2026 and Selection Process (31:25–34:31)

How Winners Are Picked

• Comprehensive review: Star ratings based on objective metrics (fees, rewards, perks, rates), plus team discussions for trends and future-proofing.
• Example: Southwest cards changed policies (adding baggage fees, removing open seating), so some new perks remain too “untested” to weigh heavily in awards evaluation.

Top 2026 Picks

• All Purpose Travel: Chase Sapphire Preferred
• All Purpose Cashback: Wells Fargo Active Cash
• Best Balance Transfer: Citi Simplicity

Remarkably, these choices matched last year’s winners, even through major industry changes.

Notable Quote:

• Caitlin: “Pick the card that's right for you, not the one that's trendy or making headlines.” (34:45)

Final Words of Wisdom

Segment: Takeaways and Closing Advice (34:31–35:21)

• Only choose a credit card that matches your actual spending habits—not what’s popular.
• If carrying a balance, prioritize 0% introductory APR offers over rewards cards.
• Consistent reevaluation is key: “If the benefits don’t add much value, or maximizing the card is becoming too much of a stressor, just consider getting rid of it or downgrading.” (30:36)

Key Quotes & Timestamps

• Sean on value spending:
  “I’m going to do what I can to keep my money in my community.” (02:57)
• Caitlin’s word for 2025 credit cards:
  “Chaotic.” (19:37)
• Elizabeth on buy now, pay later danger:
  “You start buying more things and then you’re just paying things for a long period... loan stacking.” (22:02)
• Caitlin on best advice:
  “Pick the card that’s right for you, not the one that’s trendy or making headlines.” (34:45)
• Caitlin on minimizing debt:
  “If you can, try to pay more than the minimum payment, even if you can only afford a couple of dollars each month, that will help you get out of debt faster.” (27:11)

Timestamps for Major Segments

• 02:14 — Start of value-aligned spending conversation
• 15:33 — Transition to credit card discussion
• 18:43 — Credit cards industry deep dive
• 19:37 — "Chaotic" credit card landscape in 2025
• 21:19 — Buy Now, Pay Later on credit cards
• 24:00 — Credit card debt and delinquencies
• 25:20 — APRs, Fed cuts, and rate realities
• 26:23 — Solutions for cardholders with debt
• 27:28 — Annual fee increases and value
• 31:25 — NerdWallet “Best Of” credit card methodology
• 33:09 — Winners: Best credit cards of 2026
• 34:45 — Final consumer wisdom

Tone & Takeaways

The episode remains upbeat and practical, blending insightful analysis with a friendly, conversational tone. The hosts emphasize both the emotional and tactical sides of personal finance, urging listeners to stay organized and intentional while also leaving space for joy, generosity, and community support.

Actionable Tips

• Audit your spending for value-alignment.
• When considering a new card, focus on actual benefits you’ll use—not just promotional perks.
• Use 0% balance transfers strategically if tackling debt.
• Only keep premium cards if the effort and rewards match your life.
• Always ask for retention offers before canceling a card.

For the next episode, tune in for a focus on insurance in 2026!