Printer Friendly Page
USAA CITED FOR HAVING THE BEST CREDIT CARD IN
THE COUNTRY -- USAA Federal Savings, which
scored
95 points out of a possible 100, earned the
highest
rating. The Navy Federal Credit Union and other
credit unions followed suit with high scores.
For more on veterans and credit cards, use the
VA Watchdog search engine...click here...
http://www.yourvabenefits.org/
sessearch.php?q=credit
+card&op=ph
Story here...
http://money.cnn.com/
2007/08/29/pf/credit_card/?pos
tversion=2007083018
Story below:
-------------------------
The best and worst credit cards
Most major credit cards earned mediocre
ratings, while cards issued by credit unions received the most kudos, a
survey shows.
NEW YORK (CNNMoney.com) -- When it comes to swiping plastic, consumers
gave high ratings to American Express, Discover, as well as to cards
issued by credit unions in a report released Thursday rating the best
and worst credit cards.
In a survey of more than 36,000 cardholders conducted by Consumer
Reports, five of the largest MasterCard and Visa issuers, JPMorgan Chase
(Charts, Fortune 500), Bank of America (Charts, Fortune 500), Citibank,
Capital One (Charts, Fortune 500), and HSBC (Charts) -- which together
control about 80 percent of the market -- earned mediocre rating scores.
The card issuer USAA Federal Savings, which scored 95 points out of a
possible 100, earned the highest rating. The Navy Federal Credit Union
and other credit unions followed suit with high scores. The top three
rated issuers charged interest rates between 9 percent and 11 percent.
That's much lower than the two lowest-rated issuers, Direct Merchants
(scoring 67 points) and Washington Mutual's Providian (earning 61
points), which both charge 17 percent.
Even though the USAA Federal Savings card ranked the highest, it is
limited to only members of the military, retired military personnel and
their families.*
Other credit unions, which also earned high scores on the list, also
have limited membership, but recently many have loosened their policies
and almost anyone can join credit union.
"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.
All-in-one credit card
Consumers also said they were very satisfied with the two popular credit
cards American Express and Discover, whose median interest rates are 14
and 15 percent.
Two retailer-issued credit cards also scored well. Cabela's, which sells
sporting equipment, and the upscale department store Nordstrom, both
charged an average interest rate of 14 percent on their Visa cards, and
have a long history of superior customer service, the survey said.
Cardholders said that they had far fewer billing headaches and other
problems with the card issuers at the top of the ratings.
"It's more important than ever to have a card with a higher Consumer
Reports rating because the lower-rated ones can cost you a lot due to
their higher interest rates and fees," said Walker.
Consumers who used the MasterCard and Visa bank cards through JPMorgan
Chase, Bank of America, Citibank, Capital One, and HSBC, complained that
they were assessed unfair late fees or experienced unexpected
interest-rate increases.
Providian had the worst ratings for unexpected interest-rate hikes.
Cardholders said their bills arrived too late for them to get their
payments in on time, and they were more likely to be charged a late fee
even when they sent their payments a week before the due date.
20 timeless money rules
Twenty-eight percent of cardholders surveyed who pay the highest
interest rates (interest of more than 25 percent) reported that their
rate increase was due to a universal default clause. Cards that employ a
universal default allow issuers to increase rates if a consumer makes
late payments on other accounts, such as car loans, mortgages, or other
credit cards.
The survey said penalty fees for late payments more than doubled in the
last 12 years, from an average of $13 in 1995, to $28 this year. Some
fees were even has high as $39.
The survey also reported how well customers said issuers treated them
when they needed assistance. USAA Federal Savings earned a top score,
while other credit unions, American Express, and Discover were also
highly rated.
Overall, 27 percent of consumers who called customer support reported
problems in getting help from representatives. The respondents reported
unreasonable waits, difficulty navigating voice systems, or having to
make multiple calls to speak to several staffers.
-------------------------
Larry Scott --
