Dissatisfaction with fees and rates has driven credit-card customer satisfaction down to a three-year low, according to the J.D. Power and Associates 2009 Credit Card Satisfaction Study released today.
Nearly 20 percent of the 9,000 customers who replied to the survey in May and June reported an increase in the interest rate on their credit card this year, J.D. Power and Associates reported.
The study asked cardholders about six key factors: interaction, fees and rates, billing and payment processes, rewards, benefits and services and problem resolution, according to a statement from the global marketing information services company.
Satisfaction with fees and rates dropped to 603 points on a 1,000-point scale – or 60.3 percent, down 37 points from 2008 and that made a significant difference in the overall satisfaction rating, which stands at 703 points this year, the company said.
Almost 20 percent of respondents told surveyors their interest rate had gone up this year. That’s almost double the 10 percent who reported a similar change in the 2008 survey.
The biggest decline in satisfaction with fees and rates – a drop of 53 index points from the previous survey numbers – was found among those who carry a balance from month to month, the survey showed. Almost a fourth of which saw their interest rates rise this year.
Late-payment fees were leveled against 14 percent of cardholders this year, up from 11 percent in 2008, the survey showed.
“Overall satisfaction declines 86 index points when a customer incurs a late fee,” the statement quoted Michael Beird, director of banking services at J.D. Power and Associates, as saying. “Issues with fees also contribute to the high incidence of problems and complaints in 2009, with 18 percent of customers reporting problems, compared with 10 percent in 2008.”
The company suggests four steps you can take to improve your experience with credit cards:
Compare the performance of credit card issuers, starting with
the survey ratings on the J.D. Power and Associates website.
Make sure you are getting a card with the features and
benefits that are important to you and that fit the way you
plan to use the card. If you plan to carry a balance, find one
with low rates and fees, but, if you will use the card to pay for
everything from groceries to vacation and pay off the balance
each month, look for a card with a rich and flexible reward
program.
Learn about the benefits and services available on your
card and use them. Cardholders who take advantage of their
cards’ features are more satisfied than those who don’t.
When there’s a question about the appropriateness or
accuracy of a fee or interest rate, ask that it be waived
or adjusted. Issuers are anxious to fix mistakes they have
made, and are willing to make accommodations for valued
customers.
For the third straight year, American Express ranked highest on the satisfaction ratings with an index score of 762 – or 76.2 percent. American Express cardholders were pleased with the company’s rewards, benefits and services, and billing and payment process, the survey showed.
Here’s the way the survey showed credit card issuers stacking up, by company and satisfaction rating score:
American Express: 762
Discover Card: 751
National City: 740
Wells Fargo: 724
Barclaycard: 717
U.S. Bank: 715
Chase: 708
Industry average: 703
Citi Cards: 699
First National Bank of Omaha: 689
Bank of America: 687
Fifth Third Bank: 685
HSBC: 682
Capital One: 671
Target Visa: 665
WaMu: 663
GE Money: 661
Credit One Bank: 618
First Premier Bank: 616
For details about how each issuer did on each of the key factors, visit the J.D. Power and Associates website.
Posted September 1, 2009