Consumer Reports rates the best and worst credit cards…
A recent report by Consumer Reports surveyed 36,000 credit card holders to determine the best and worst credit cards available to U.S. consumers. Not surprisingly, the report rates five of the largest credit card issuers – JP Morgan Chase, Bank of America, Citi Bank, Capital One and HSBC – as “mediocre” at best. Unfair late fees, unexpected interest-rate increases and poor customer service were all causes for respondent complaints.
The highest ratings went to cards issued by credit unions - followed by American Express and Discover Card. The top three rated companies charged interest rates between 9% and 11%, which made them very appealing to consumers. But even with rates averaging 12% to 15%, consumers were very satisfied with American Express and Discover Card. USAA Federal Savings, limited only to members of the military, retired military and their families, scored 95 out of a possible 100, earning the highest rating in the report.
According to the Consumer Reports survey, customers were much happier with credit cards issued by credit unions. The survey showed that credit unions were much better at resolving problems, too. “Credit unions are run by their members, so they are more likely to take care of you if you have a problem, and they are less likely to suddenly increase their interest rates,” said Amanda Walker, senior editor at Consumer Reports.
At the other end of the spectrum, Washington Mutual / Providian scored a 61 and had the worst rating of all issuers. The main reason: unexpected interest rate hikes. Direct Merchants Bank also scored low with a 67. Both issuers charged an average 17% APR.
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