Here’s a no-brainer study for you: according to a new study from J.D. Power and Associates, American consumers’ overall satisfaction with credit cards is improving. In other news, water is still wet, the sky is still blue and we’ll all be paying taxes next year.
The study also found, however, that just because overall satisfaction with credit cards was on the up-and-up, consumers weren’t necessarily happy with their current options. How exactly does that work? Let’s find out.
Who gets a gold star for the day
According to the study, dubbed the Credit Card Satisfaction Study, consumer satisfaction with plastic cards is up to 714 out of 1000, culled from 8500 participants in regards to 6 major factors: billing and payment, benefits and services, actual interaction with card companies, terms on the cards, rewards, and problem resolution.
When broken down by the card companies themselves, American Express, Discover, and US Bank came out on top with the popular vote, while CitiGroup, HSBC, Capital One, and Bank of America all came out not looking quite as pretty. Consumers seemed to prefer Amex’s rates, rewards, and services, awarding them the gold star with the highest amount of satisfaction.
How would you rate your experience?
One reason for many consumers’ increased affection for their cards may have come as a result of the Credit CARD Act of 2009. Short for the Card Accountability Responsibility and Disclosure Act, the new law and its terms have seen more consumers pleased with their card’s billing and payment terms.
The study also found, not so surprisingly, that consumers who carried a monthly balance on their cards showed increased satisfaction under the new terms, while those who paid their bills in full each month weren’t quite as enthusiastic with their cards.
Why? Those who carry monthly charges, revolvers, tend to be more sensitive to their rates and fees, with a belief that as bad as things are now, they could’ve been even worse. Revolvers are then more likely to be pleased with the CARD Act and its disclosures of credit term.
Do not pass Go
But in the end, many consumers remain wary of credit cards and card companies – many likening the relationship to a game of cat and mouse according to the study. Indeed, another figure on the rise is the percentage of people shopping around for other cards, and those who said they didn’t plan on switching cards anytime soon accounted for only 22% of the poll. So which end of the spectrum do you fall under?