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Consumers are very interested in maximizing rewards and willing to switch credit cards to get the best rewards and benefits, according to the new J.D. Power 2018 Credit Card Satisfaction Study. Yet they also found out that some consumers don't have a firm grasp on the benefits that come with their cards.
The study also took a close look at which credit cards gave consumers the most satisfaction, finding that Discover is "tops" with consumers, with American Express coming in close behind, whereas Barclays U.S. slid into third place.
While some credit card issuers did very well, others did not. Wells Fargo, Synchrony and Credit One were at the bottom of the customer satisfaction list.
Consumers looking for more rewards
According to J.D. Power, competition between credit card issuers is fierce, and it is one of the reasons why consumers are busy shopping for the most lucrative credit card offers. They found that 47% of people had switched to a different credit card during the last year because it came along with a better benefits and/or rewards package.
At a time when more consumers are cashing in their rewards and using benefits, some issuers have cut or even eliminated some benefits from their credit card programs, but some may be also increasing the rewards that are popular with consumers.
"The key for issuers in this highly competitive environment is to make sure they are offering the types of benefits that resonate with current and potential customers," said Jim Miller, Senior Director of the Banking Practice at J.D. Power.
"Most customers are aware of only a handful of benefits and use just nearly two of them, so there is room to simplify the benefits offered. It is better to have customers fully understand their benefits rather than provide benefits of which customers aren’t even aware," he added.
Yet consumers might benefit from more education about their credit card benefits because the study found that 36% of credit card customers don’t totally understand the benefits that come with their credit card.
The full story on the credit card satisfaction rankings
Discover is on top of the rankings, along with American Express and Barclays U.S., but consumers may be wondering how their issuer did in the study. Here is the list from best to worst:
- American Express
- Barclays U.S.
- Capital One
- Bank of America
- U.S. Bank
- Wells Fargo
- Credit One
The U.S. Credit Card Satisfaction Study took place between September 2017 and May 2018. In the study, they looked at six factors to determine customer satisfaction, including interaction, credit card terms, communication, benefits and services, rewards and key moments. During the study, they surveyed 24,018 credit card customers.