This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

We're Getting More Confused by Credit Card Terms and Rewards

NEW YORK ( LowCards.com) -- Credit card users are more satisfied with their cards this year, but a substantial number remain confused about their rewards and terms.

The 2013 Credit Card Satisfaction Study by J.D. Power showed fewer than one-half (47%) of credit card customers say they "completely" understand their credit card terms. Among these customers, 73% indicate a lack of clarity regarding interest rates and 31% lack an understanding of late payment fees.

In addition, many customers say they remain confused about their credit card rewards. Customer understanding of how to earn and redeem rewards with their credit card has dropped over the past year, with 59% of customers saying they "completely" understand how to earn rewards now, compared with 66% last year. One-third of customers said they are unaware of the benefits associated with their card.

The study showed there could be a strong financial incentive for issuers to do a better job explaining the rewards programs to their customers.

"Customers who use their card's benefits spend an average of $400 more per month on their card compared with those who are aware of benefits but do not use them, so clearly this is an area of importance to card issuers," said Jim Miller, senior director of banking services at J.D. Power.

The study showed that the credit card industry is making strides with their customers, as cardholder satisfaction has improved for the fourth year in a row.

The study also shows signs that economic conditions are slowly improving for households: 27% of credit card customers indicate they are better off this year, up from 23% last year and 20% in 2011. On the other hand, 17% indicate they are worse off, down from 23% last year and 29% in 2011.

The study measured credit card customer satisfaction in interaction, credit card terms, billing and payment, rewards, benefits and services and problem resolution. It was conducted in May and June of this year.

Bill Hardekopf is chief executive of LowCards.com, which compares and rates more than 1,000 credit cards. He is the co-author of "The Credit Card Guidebook."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.09 0.00%
FB $79.75 0.00%
GOOG $571.34 0.00%
TSLA $197.32 0.00%
YHOO $44.11 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs