Consumer Reports has come out with its annual list of the best and worst credit cards in the industry. Not surprisingly, USAA, which has been covered with articles about the Platinum Total Rewards Mastercard and the American Express Rewards Card scores highest among the card issuers. Another high scorer is the Navy Federal Credit Union, and the Cabela’s and Nordstrom’s store cards fared well too.
On the wrong side of the ledger sat Direct Merchants and Providian, mainly because of high interest rates and high fees, with both of them charging an average of 17% interest (and a higher APR). The biggest complaint about Providian was a combination of unannounced interest rate hikes and an outdated billing system that prevented customers from getting bills in time to avoid late payment fees and paying interest.
Not surprisingly, 27% of respondents to the Consumer Reports survey said that they had difficulties in calling customer support. In an industry where efforts to squeeze operational costs mean increased use of computerized touch tone systems (the “press 1 for English” that you hear on your phone when you call the customer service number) and through offshoring customer service representatives to India, the Philippines, and Costa Rica, where credit card usage is not nearly as widespread, the resultant decline in service quality is not a surprise.
What do you think of the results? Leave a comment below and let me know!
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