What kind of credit card user are you? Your purchasing style – either carrying a balance or paying off the whole bill every month – will determine which credit card is right for you.
J.D. Power and Associates analyzed the responses from more than 7,600 credit card users to understand what made them either satisfied or unhappy with their current cards. The study measures customer satisfaction with credit cards over five key factors: interaction; billing and payment process; fees and rates; reward programs; and benefits and services.
The results are illuminating. Two credit card company leaders in customer satisfaction stood out significantly from all the rest and were the only ones to perform above the industry average. They accomplished this with distinctly different offerings that appealed to customers with very different needs and expectations. Other cards excelled in some areas but not others and, depending on your individual needs, might also provide solid choices.
American Express ranks highest among all credit card companies and performs well across all of the five customer satisfaction factors. Amex’s customers are generally what the industry calls “transactors” – customers who pay off their bills in full every month and the company focuses on the rewards and benefits of its cardholder experience and it excels in meeting their expectations. Nearly 8 out of ten transactors select their card because of the value they feel they get from its rewards programs, with interest rates of little importance because of their purchasing style.
At the other end of the spectrum in usage patterns, if not satisfaction, are the cardholders of Discover Card, the second highest ranking company. Discover Card users, are primarily “revolvers” who carry a balance forward each month. For 65% of this type of purchaser, low interest rates and fees are the driving force behind their choice of card. Discover Card has found success by offering its cardholders simplicity, with easy reward redemption, a particularly low incidence of reported problems and no annual fees.
Here’s how cardholders scored high performers in areas they identified as important to them:
Rewards (Transactors)
- AmEx
- Discover
- Chase
Fees/Rates (Revolvers)
- AmEx
- US Bank
- Discover
Call Center
- AmEx
- Discover
- Chase
Problem Incidence
- Target Visa
- Discover
- WaMu
Accepted Everywhere
- National City
- WaMu
- Chase
- Target Visa
Some additional credit card insights:
- Transactors are, as a whole, more satisfied with their credit cards than revolvers and are twice as likely as to remain with their primary credit card issuer.
- Even though transactors are most interested in rewards programs, 72 percent of all cardholders participate in some type of reward program.
- Hotel stays are the most satisfying type of reward, followed by cash rewards.
- One quarter of all cardholders don’t know if their card offers them additional benefits and one-third haven’t used any during the past year. Those users have lower satisfaction levels than their better informed counterparts.
For more information, view credit card satisfaction ratings or read the press release.
