These are your favourite credit cards, Australia

None of the major lenders cut the mustard when it comes to credit card satisfaction, a new survey by polling group, J.D. Power has revealed, with Bendigo Bank instead coming out on top.

They were followed by American Express, Bankwest and Coles – described as “better than most” by the polling group. NAB, the Commonwealth Bank, ANZ and Westpac all slid into the average category, while Citibank and HSBC fell below.

As Bendigo Bank customers may know, the key to satisfaction is clear and simple communication.

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Alarmingly, however, 89 per cent of Aussie cardholders don’t fully understand what they’ve signed up to, with 81 per cent failing to understand their benefits and services. That same percentage of credit card-holders also don’t understand their credit card terms.

Legal and regulatory language is the most common obstacle to consumer understanding, followed by foreign currency and transaction fees and interest rates. Cardholders also don’t understand their card’s balance transfer conditions, late payment and annual fees and credit limits.

“Despite the need to understand what they have signed up for, just over one third of cardholders were proactively contacted by their issuer in the last 12 months,” said financial services practice lead at J.D. Power, Anthony Chiam added.

“Cardholders not only appreciate when they are communicated in language that is easily understandable, but also prefer to speak with someone directly when they have a problem with their card or card activity.”

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However, four in 10 cardholders were approached with offers to increase their credit limit over the past year. Nine in 10 cardholders declined with 57 per cent of those cardholders admitting they didn’t understand the language used in the terms and condition.

The survey follows a damning review by the corporate watchdog, ASIC, into Australian credit card debt.

The review found one in six cardholders are struggling with debt and warned that credit card can present a “debt trap”.

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“Only a handful of credit providers take proactive steps to address persistent debt, low repayments or poorly suited products,” ASIC deputy chair Peter Kell said.
“There are a number of failures by lenders to act in the interests of consumers and we expect them to respond swiftly to our findings.”