According to industry experts, 80% of the credit card industry is dominated by just five Visa and MasterCard issuers: Bank of America, JP Morgan Chase, HSBC, Capital One, and Citibank. Yet, Consumer Reports rates all five of these card issuer giants in the market with “so-so” scores in their latest credit card ratings.
The Consumer Reports National Research Center surveyed 36,298 credit card holders that held a total of 61,944 cards in order to gather their research data. When compared to other credit card companies, a larger percentage of those people carrying credit cards from these companies stated that they were assessed late fees that they thought were unfair or had their interest rates increased unexpectedly. The survey also found that those carrying these cards experienced more billing nightmares when compared to the cards that were at the top of the consumer satisfaction list.
Some of the cards that rated at the top have a limited membership. For example, the USAA Federal Savings card listed at the top, but is limited to only those that are in the military or that retired from the military and their family members. The Navy Federal Credit Union also rated high as well as several other credit unions. These cards also charge a lower interest rate than what is traditionally found with other credit cards.
At the bottom of the consumer satisfaction list were Providian, which is now offered through Washington Mutual, and Direct Merchants. Whereas USAA Federal Savings earned a score of 95, Providian received a score of 61.
American Express rated well overall, as did Discover Card. The full report is available in the October issue of Consumer Reports, which became available on September 4.
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