A report by the price comparison website uSwitch has revealed that 20% of consumers (some seven million users) are currently dissatisfied with their credit card provider. The uSwitch survey examined customer satisfaction across a variety of different categories, ranging from payment and application services to value for money. Despite general dissatisfaction however, card-holders were often unwilling to change their card provider. Given the growing popularity of credit cards in the United Kingdom, this appears a rather worrying development.
In terms of satisfaction and performance, Nationwide was ranked the best provider - only 6% of customers reported problems with their card provider. According to Mike Naylor, Personal Financial Expert at uSwitch, Nationwide's success can be credited to "…their unusually preferential order of repayments and the lack of exchange rate loading fees on its credit card overseas." American Express and Morgan Stanley also fared well in the uSwitch poll. Capital One which currently has 6% of the market share in the UK received the worst rating amongst card providers with 32% of card-holders – a whopping 1.9 million individuals - reporting dissatisfaction.
There are a number of important reasons behind card-holders' frustration. Part of the blame can be attributed to high annual interest rates and poor customer services. Some card holders, however, have little choice when it comes to the matter. Consumers with poor credit ratings often find themselves unable to switch to a different card provider.
However, the majority of unhappy card-holders are unlikely to take any action against their card provider. Surveys suggest that card-holders are likely to stay with the same card provider for an average of six years regardless of whether or not they are content with the services provided. As a consequence high street credit card providers still dominate the market, holding two-thirds of market share and serving 21.5 million customers across the country. Card-holder indifference can be attributed to a number of factors. These range from loyalty to the card provider (this was the case for 31% of customers) to general consumer apathy. Over half of consumers never compare their existing deal with other similar deals available on the market. As such card providers are able to rely on 'customer lethargy' to maintain their profits and have no incentive to improve the quality of the services offered.
These days switching credit card provider can be a quick process. There are also many savings to be taken advantage of if you choose to transfer to another card provider. For example you could save over £2000 in interest on a 13.0% balance transfer deal similar to those offered by banks such as NatWest and the Royal Bank of Scotland. Given the wealth of information available through price comparison websites and other media, finding the best credit card deal is no longer difficult. Price comparison guides, such as the magazine, Which? are a good starting point. Be sure to shop around for the best possible deal, as doing so could save you a great deal of money.
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