Credit card companies are meeting consumer expectations, according to research recently published in Cardbeat, the syndicated market research report from Auriemma Consulting Group (ACG). When consumers apply for credit cards, they understand the benefits they will receive and the implications of borrowing funds through card-issuing banks.
Responding to questions about credit card applications, 58% of survey respondents agreed that they feel well-informed about credit cards and their benefits before deciding to apply for new plastic. Thirty-five percent of all participants agreed completely that the information offered was exemplary, giving it a rating of 10 out of 10.
“Despite the perception, consumers do not feel they are having the ‘wool pulled over their eyes’ by credit card companies,” says Megan Bramlette, managing editor of Cardbeat. “In general, consumers are pleased with the credit card application process.”
Another finding of the research: Only a third of consumers applying for a new credit card do so after researching cards available to them. Nearly half of applicants apply for a new credit card spontaneously, with no prior thought given to obtaining an additional card. “Credit card companies have the opportunity to grow their customer bases by presenting consumers with compelling offers,” Bramlette says.
“Security of personal information in the processing of a credit card application, timeliness of response and clarity of the application form are the costs of doing business,” she says. “Overwhelmingly, card companies are meeting consumers’ expectations in these areas.” Issuers also scored well regarding the time in which they approve or deny applicants, their commitment to keeping applicant data private, and the simplicity of application forms.
The information in this release came from a survey of 408 credit card users in February 2007.
ACG is a management consulting firm in the payments and lending industry. Cardbeat is a syndicated market research study from ACG that provides insight into how consumer perceptions impact credit card acquisition and usage.