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5 Ways Credit Limits Shape Cardholder Choice, Spend, and Loyalty

(New York, NY) When card issuers compete for attention, rewards, fees, and benefits usually take center stage. But a card’s spending limit can determine whether cardholders apply for it, reach for it, and keep it in their wallets.

Auriemma Group’s latest issue of Cardbeat US finds that credit limits shape decisions throughout the cardholder relationship—from reducing uncertainty before application to capturing spend and strengthening long-term loyalty. Here are five ways credit limits can give issuers a competitive edge:

1. Higher Limits Help Card Win Top-of-Wallet Status

Rewards may attract cardholders, but spending capacity helps determine which card they actually use. Among those with multiple credit cards, 68% say the card with the highest credit limit is also their primary card.

In fact, nearly 3-in-10 (29%) explicitly cite a larger credit limit as a reason for choosing their primary card over others in their wallet. Although credit limits still trail rewards, acceptance, brand trust, and customer service, they have more influence on primary card selection than travel benefits, a lower APR, or premium perks.

2. Limit Certainty Can Turn Consideration Into Application

Credit limits begin influencing cardholder behavior before an account is ever opened. Because applicants typically do not know how much credit they will receive, removing some of that uncertainty can make an offer more compelling.

Nearly half of cardholders (47%) say advertising a guaranteed minimum credit limit would increase their likelihood of applying for a credit card. If applicants can check their eligibility without affecting their credit score (unless they accept the offer) that figure rises to 57%. For issuers, greater transparency around both the potential limit and the application process could help convert consideration into action.

3. Too-Low Limits Send Spend Elsewhere—While Extra Capacity Unlocks It

The consequences of an insufficient credit limit become clearest at the point of purchase. Among cardholders who hold a card with a lower limit than they need, 35% have used another payment method, 25% have switched to a different credit card, and 23% have spent less than they otherwise would have.

Additional capacity can produce the opposite effect. Among those holding a card with more credit than they need, 30% have used it for larger purchases, 27% feel more comfortable making purchases with it, and 26% use it more frequently. Credit limits do not simply define purchasing power—they help determine which issuer captures the transaction.

4. Credit Limits Tell Cardholders How Issuers See Them

To cardholders, credit limits can feel more like a risk-management decision. They can signal of how much confidence an issuer places in the relationship.

8-in-10 (80%) agree that a higher credit limit makes them feel trusted by the issuer, while 78% believe their limit says a great deal about how the issuer views them as a customer.  Higher limits also make cards feel more valuable (75%) and/or premium (73%), and 75% say they would be more likely to keep a card long-term if it had a higher limit. Few account features communicate trust and value as visibly—or as directly.

5. Rewarding On-Time Payments With Limit Growth Can Build Primacy

Credit limit growth can also turn responsible account management into a tangible benefit. When shown a card that would increase their limit by $1,000 after every six consecutive on-time payments during the first three years, 62% of cardholders expressed interest.

The concept could influence more than acquisition. Among those interested, 86% say they would be likely to make such a card their primary credit card. By giving cardholders a visible path to greater spending power, issuers may be able to reward positive behavior while strengthening the card’s position in the wallet.

“Issuers and networks spend a great deal of time competing on rewards, benefits, and pricing, but credit limits may be one of the most underappreciated levers available to them,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “A thoughtful credit limit strategy can influence whether a consumer applies, which card they reach for, and whether they keep using it over time. Issuers that treat credit limits as a relationship builder rather than solely a risk-management tool may be best positioned to deepen engagement.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group in June 2026 among 800 adult credit cardholders. The number of interviews completed is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying

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Where is there Opportunity for Issuers in a K-Shaped Credit Card Market?

(New York, NY) As issuers continue to invest in premium products with richer benefits and elevated annual fees, many cardholders feel caught in the middle—between cards that feel ultra-premium or ultra-basic. According to Auriemma Group’s latest issue of Cardbeat US, what many cardholders are looking for is a middle-market option, and issuers able to provide one could discover an underserved segment of the cardholder population.

Most cardholders believe credit cards place too much emphasis on premium benefits. Six-in-ten (60%) agree that they focus too heavily on premium perks and benefits, while 44% say most cards available today are either too premium or too basic for their needs. At the same time, 57% feel forced to choose between cards with high fees and strong rewards or low-cost cards with limited value.

“Cardholders are telling us the market feels increasingly polarized,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “For many, the choice isn’t between good or bad card offerings—it’s between paying for benefits they don’t fully use or settling for a product that feels stripped down.”

Recent premium card program refreshes— like the Chase Sapphire Reserve —have largely focused on the high-end of the market, with greater annual fees and premium travel benefits. Broader cardholder demand appears to be for lower-fee offerings.

Only 14% of cardholders say they would prefer a card with strong rewards and benefits paired with a high annual fee. By comparison, 32% prefer moderate rewards and benefits with a modest fee, while nearly half prefer a no-fee card with fewer rewards and benefits.

Auriemma’s research reveals a growing demand for non-premium cards. Among the 31% of cardholders who feel cards in market do not meet their needs, the leading reasons are high interest rates, annual fees that exceed the card’s value , and rewards misaligned to their spending habits.

“Many cardholders aren’t looking for more premium benefits—they’re looking for a better balance,” says O’Connor. “Access to sufficient credit, rewards that are easy to redeem, competitive rates, and value that aligns with everyday spending consistently rank above aspirational perks. For issuers, their growth opportunity may not be to move further upmarket, but to build products that better serve the cardholders in between.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group in March 2026 among 800 adult credit cardholders. The number of interviews completed is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying

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Is Funding Really a Barrier to Co-Brand Debit?

(New York, NY) Co-brand debit cards continue to gain attention across the payments industry, but questions remain about whether they can achieve notable adoption in a market long dominated by credit. One commonly cited challenge is funding—unlike credit cards, co-brand debit programs require cardholders to actively move or maintain money in an associated account. Auriemma Group’s latest issue of The Payments Report examines how cardholders are funding co-brand debit cards today and finds that concerns about this potential barrier may be overstated.

Auriemma’s data indicates co-brand debit cardholders tend to have an easy time managing their account. From opening (75% easy), funding (75%), and linking to other bank accounts (70%), co-brand debit accounts appear to deliver a low-friction experience. For issuers and brands, this suggests that usability may be less of a challenge than driving initial interest and engagement.

“Cardholders most often link a direct deposit to their co-brand debit account, but transfer-based funding is utilized too,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “And most of those who do not currently hold a co-brand card say they would likely fund it the same way if they acquired one.”

Not only are co-brand debit cardholders funding their accounts, Auriemma’s research found that 43% would maintain a balance of at least $1,000 if their card offered 1% cash back on partner brand purchases, gas, and groceries, and 0.5% cash back on everything else. Additionally, nearly three-quarters would fund that account at least monthly, highlighting that the product could become a competitor to traditional debit.

“Funding co-brand debit accounts may be less of a barrier than expected,” says O’Connor. “Cardholders are not only open to a variety of funding methods, but many indicate a willingness to fund them regularly and keep substantial balances in these accounts. That suggests the bigger challenge for issuers and brands may not be getting money into the account—it may be creating a sustainable rewards proposition strong enough to motivate cardholders to make the account part of their everyday financial lives.”

Drawing on insights from recent issues of The Payments Report, Auriemma Group will be exploring these findings and more in a member-exclusive webinar Rethinking Co‑Brand Cards: Debit’s Emerging Role on June 24 from 2:00–2:45pm EST. The session will examine where co-brand debit fits within today’s payments landscape, why it is gaining momentum, and the key considerations for issuers and brand partners as they evaluate future program strategies.

Members interested in joining should email research@auriemma.group for more information.

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in April 2026 among 800 adult debit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Shell Launches New Co-Brand Credit Card

Congratulations to Shell, Imprint, and Mastercard on the launch of the new Shell credit card program. In an increasingly competitive co-brand landscape, the program stands out with a particularly strong value proposition that combines meaningful everyday value with benefits that feel highly relevant to Shell customers. We’re excited to see how the program grows from here.

Cardholders earn:

  • 4% back at Shell on gas, EV, and in-store purchases
  • 3% back on dining and groceries
  • 2% back on everything else

Plus:

  • $50 sign-up bonus after spending $500 on the card in the first 60 days of account opening
  • No annual fee
  • No impact to credit score to see if you’re approved
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Premium Annual Fee Cards Must Work Harder to Prove Their Worth

(New York, NY) Premium credit cards continue to evolve, rolling out new perks, lifestyle credits, and expanded travel benefits to justify rising annual fees and attract high-value customers. The Chase Sapphire Reserve is the latest example, introducing refreshed dining and travel credits alongside a $795 annual fee. But do richer perks meaningfully offset higher costs? Auriemma Group’s latest issue of Cardbeat US finds that cardholders hold premium rewards cards to a high standard—and expect the value they deliver to clearly outweigh the price.

Premium annual fee cards remain a niche segment—over 4-in-10 credit cardholders hold an annual fee card, but only 12% carry a premium card priced at $300 or more. Among those who do, expectations climb steeply with the annual fee. Perks and benefits are the leading driver of acquisition, and cardholders expect them to scale with cost. For a card like the Chase Sapphire Reserve, that translates into a substantial value threshold: 25% of annual fee cardholders say it would need to provide $5,000 or more in value to justify its $795 price tag.

“Premium cardholders will pay more, but only when the math works,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Issuers need to ensure their benefits program delivers multiples of the price tag, not just an incremental enhancement to existing products.”

Auriemma’s research found that 41% of credit cardholders are likely to apply for a card like the Chase Sapphire Reserve. Sign-up bonuses remain the most influential acquisition driver, followed by marketplace multipliers and the overall value of rewards, perks, credits, and memberships. Prestige and exclusivity can also heighten appeal, but the combination of immediate incentives and long-term earning potential ultimately drives adoption.

“A strong premium card program would include a mix of upfront credits and ongoing rewards,” says O’Connor. “Cards that present value both immediately and over time are best positioned to attract applicants, whereas over-indexing on either approach risks narrowing the audience.”

As premium card fees rise, the issuers that will stand out are those that make their value unmistakable. Clear, easy-to-use benefits, paired with rewards that scale meaningfully with spend, will determine which products resonate in an increasingly discerning market. As competition intensifies, premium cards must not only look compelling—they must prove their worth every day.

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in September 2025 among 800 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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