Supermarket giants are winning the hearts and monds of credit card users, according to uSwitch.com's latest credit card Customer Satisfaction Survey.
The global financial turmoil of 2009 has hit the credit card market hard, with overall borrowing falling three per cent and the number of cards in circulation dropping eight per cent.
Nonetheless, cash-strapped consumers have continued to use plastic to cover their expenses, with 21 million using their credit card at least once a month, up 4 per cent from 2007.
According to uSwitch.com's latest Customer Satisfaction Survey Marks & Spencer and Tesco have together narrowly taken the top spot from American Express to win Best Overall Satisfaction, with less than a one per cent difference between the top three.
The survey of over 10,000 credit card customers also reveals that nearly two million people are dissatisfied with the everyday service provided by their card company, with a 22 per cent gap in satisfaction levels between the best and worst provider.
American Express takes third place in the awards with 88.6 per cent of customers satisfied. While losing the top spot for Overall Satisfaction, it is also the card most likely to be recommended to a friend - or so say 81 per cent of its customers.
Just 7 out of 10 customers (70 per cent) are satisfied with the everyday customer support offered by their credit card company. Amex tops the category with 8 out of 10 (83 per cent) satisfied. Natwest, Lloyds TSB and Halifax come bottom of the table with scores of 64 per cent, 63 per cent and 62 per cent respectively.
But despite not being satisfied with their main credit card, the survey reveals customers are holding onto their credit cards for longer. In fact, half of customers (50 per cent) have held onto their main credit card for over five years.
Over a third (34 per cent) do not know how the interest rate on their
credit card compares with others on the market - and more worryingly, over two million customers (eight per cent) are aware that the interest rate on their credit card is below average or even one of the worst on the market - yet still do nothing about it.
"Tightened lending criteria and consumer cutbacks have prompted many to loosen the reliance on their flexible friends,” said Louise Bond, personal finance expert at uSwitch.com.
“However, for many, credit cards will remain an invaluable way of smoothing out any peaks and troughs in personal income. Consumers are also wising up to the added benefits of using credit cards. With generous rewards such as loyalty points that can be converted into cash, gifts, airmiles or money off your shopping bill, it's easy to see why the supermarket
credit cards are doing so well.
"Nevertheless, it's disappointing that customer service is still letting the card companies down, and the huge gap between the best and worst providers shows just how different one customer's experience can be to another's.
“By not taking the time to research the best deals available, millions of consumers are letting their providers get away with levels of customer service and value that are far from competitive. And in the current climate more than ever, savvy consumers need to make sure they are taking matters into their own hands and finding the best deal for their individual needs."
