Small is beautiful
Posted on October 17, 2007
Filed Under Advice, rates | Comments Off
American Express ranked highest among the 10 credit card issuers analyzed in the J.D. Power survey, followed by Discover. American Express received high marks for benefits, features and problem-solving; Discover earned good grades for rewards, billing and payments.
American Express and Discover also received high ratings in a recent reader survey conducted by Consumer Reports.
Card holders who carry a balance should also consider cards issued by small banks and credit unions, Daugherty says. These lenders don’t have big advertising budgets, so you have to do some research to find them. But the payoff is often lower fees and interest rates, he says.
In the Consumer Reports survey, USAA Federal Savings, which is limited to members of the military, retired military personnel and their families, received a reader score of 95 out of 100 for its American Express and MasterCard-branded cards. Several credit unions, including the Navy Federal Credit Union, also received high marks for their cards. Rates on cards from these lenders ranged from 9% to 11%.
The average rate on a variable-rate credit card is 14.5%, according to Bankrate.com. Card issuers that received the lowest rankings from Consumer Reports readers charged 17%.
You must belong to a credit union to apply for one of its credit cards, but joining a credit union is easier than it used to be, Daugherty says. Many employers sponsor a credit union. You may also be eligible because you live in a certain geographic area or are related to someone who is already a member. The Credit Union National Association offers a credit union locator at its website, www.cuna.org.
by Sandra Block