JD Power U.S. Credit Card Satisfaction Survey
I think if you asked the average points/miles enthusiast who their favorite bank is you would get a much different answer than if you asked a member of the general public. Just a hunch. Anyway, JD Power does a credit card satisfaction survey every year and recently released their latest findings. Let’s take a look.
The Wrong Card
If you have ever had a conversation with a normal person, then you know they often carry the wrong card. They have that Marriott card they charge everything to or even worse they applied for the Frontier Airlines credit card on a flight one time and have stuck with it. According to JD Power, 20% of consumers have the wrong card for them. Having the wrong card doesn’t decrease satisfaction but it does mean they use the card much less.
More than 20% of customers have a card which has fees or rewards not aligned with their actual purchase habits. The study finds that while their levels of satisfaction are not dramatically different, customers who have a wrong card, compared with those with a card better suited to their needs, spend less per month on their primary card ($783 vs. $1,035), use their card for a smaller share of their total spend—cash and debit card spend—(37% vs. 45%) and are more likely to switch cards (21% vs. 9%).
Another thing I suspected is that people rarely audit their credit card situation. What was a good card for you a few years ago may no longer be the best card. You may not use the rewards program anymore or it may have devalued.
Miller notes that customers are carrying the wrong card for a variety of reasons, often because either their needs or financial situations have changed since they signed up for the card; they signed up for a rewards program they no longer use; or the card’s fees or rewards programs have changed and the card has become less attractive.
Other Interesting Findings
There are a ton of other interesting points in the report. Among them are:
- Airline cards are popular, but 44% of airline customers shouldn’t have the card.
- Customers who use the bank’s mobile app are more satisfied overall.
- Having a problem with a bank significantly increases the chance of defection.
Favorite Card Issuers
Now for the big news. For the past 8 years Amex has been the top card issuer in this poll, however they lost the top spot this year to……………….Discover. Yup, Discover the bank that has a fairly simple loyalty program, runs various promotions and has goofy commercials emphasizing their customer service.
American Express does still come in second with Capital One finishing third, Chase fifth and Citi taking the second to last spot on the list only above Syncrhony! You can find all of the findings along with the full rankings in JD Power’s press release.
What do you think about the survey and the findings? Is there anything that surprised you? Let us know in the comments!
HT: Reddit
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I’m not surprised Citi is low on the list. I just got the Citi Advantage business card – and it doesn’t show pending charges online! I check my active cards almost every day, and to have to wait until a charge is posted is very bothersome to me.
A lot of my friends who do not care about points and miles use Discover cards for everything. They like that it is a no-fee card that earns them cash back.
I’m not surprised Synchrony is on the list. They issue a lot of store credit cards.
I agree too. Discover has the best customer service, period.
I totally agree with Discover’s service being top notch and their category bonuses are quite good. Nothing beat huge bonus I got from them with their double cashback promo and Apple Pay bonus which I just received a month ago.
But I only wish that :
1) Their Apple Pay works everywhere they say it will. Many merchants don’t take Discover via Apple Pay but do via swipe. No big deal now but during the 10/20% Apple Pay promo, I quickly learned this is a big gap in their acceptance.
2) Better acceptance in casual restaurants. So frustrating to find smaller chains or independents that take MC, VI and AX, but NOT DS.
How much did you get in extra bonus from discover? It’s been almost 3 months since the end of my double cash back “year” and I’ve yet to get anything. I’m expecting about $2500 and I am concerned they are not going to honor the promotion.
Not surprised at all about Citi! I don’t have experience with Syncrhony, but I can imagine a bank being worse than Citi. Hopefully they’ll step up their game.
I’m very surprised about Chase being that low though! I mean, their 5/24 rule is quite annoying, but I’ve had nothing but good (quite an amount!) interactions with them over the years.