Credit Card Debt Management

Consumer Reports conducted a survey of 36,000 credit card holders and the five top dogs in the industry got mid-level rankings. Surprise, surprise…

The most common complaints about these five (which have a combined 80% stranglehold on the MasterCard and Visa market):
O Unfair late fees
O Unexpected interest rate increases (due largely to Universal Default Clause, according to the report)

Providian actually ranked worst on unexpected interest rate hikes. Consumers stated that their bills arrived too late for them to make payments on time and they were often charged late fees even when payment was submitted a week before due.

The five powerhouses in question to which we made earlier reference: JP Morgan Chase (boo-hiss), Bank of America, Citibank, Capital One and HSBC. American Express and Discover fared better, with average interest rates of 14 percent, according to the survey. Nordstrom’s department store and Cabela’s sporting goods mega-retailer both had favorable reviews for their Visa credit cards, which typically carry around 14 percent on average.

The report also showed that credit unions got some consumer love, which is a no-brainer because credit unions have a long history of being for the people, by the people. Before you fill out that application, you are in the driver’s seat. Be smart, shop around and read the fine print. Use this report as a roadmap because 36,000 consumers tell no tales. It can save you a lot in future interest charges and late fees.

Seeing as Discover fared so well in the Consumer Reports survey, we may just have to forgive their lapse in judgement by advertising their Motiva credit card with a sun running on a treadmill. At 14% average APR, it seems a little less ghastly.