Study: Card Loyalty and Understanding of Credit Card Terms is Low
Customer satisfaction with credit cards has rebounded, but card loyalty continues to decline, according to the J.D. Power and Associates 2010 U.S. Credit Card Satisfaction Study.
Customers who say they “definitely will not switch” primary cards in the next 12 months averages 22 percent in 2010, down from 25 percent in 2009 and 30 percent in 2008.
The study shows that the CARD Act has not improved the credit card knowledge of all cardholders. 16% of card customers say they did not receive CARD Act disclosures. Only one-third of cardholders of cardholders reported they completely understand their credit card terms.
The largest increase in satisfaction with credit card terms is among customers who usually carry a balance each month (revolvers). 29 percent of revolvers report experiencing a rate increase in 2010, compared with 24 percent in 2009. This group is more likely to say that CARD Act disclosures improved their understanding of their credit card terms
In contrast, satisfaction customers who always or usually pay their entire credit card balance each month, has declined slightly, compared with 2009. 21 percent report a rate increase in 2010, compared with just 13 percent in 2009
American Express ranks highest in customer satisfaction for a fourth consecutive year with a score of 769 and performs well across all six factors that drive satisfaction. Discover Card follows with a score of 757, and U.S. Bank ranks third with a score of 727. The highest-ranked issuers score high in customer service and exceptional rewards and benefits.
The 2010 U.S. Credit Card Satisfaction Study is based on responses from more than 8,500 credit card customers. The study was conducted in May and June 2010.