American Express, Discover named as best credit card issuers on clarkhoward.com

Why do we get in over our heads with credit cards? The likeliest explanation is that we kid ourselves. When we use a card, we expect that we'll pay it off when the bill comes.

But most Americans run balances on cards. What's the interest rate on your credit card(s)? JD Power reports that 53% of us can't answer that question.

Clark sees that glass as half empty because when you are paying interest for a debt, you should know what that interest rate is. A high interest rate eats at your future. Remember, most of your standard monthly payment goes to interest, not principal.

The credit card issuers want you hooked on debt forever. Nobody ever got rich paying interest to Visa and MasterCard issuers.

If you are one of the Americans who still has good credit, why not shop around for a better deal on credit cards? Clark wants you to look at your local credit union first. They won't have flashy offers or enticing teasers; they'll just give you a straight deal.

Quality varies dramatically among the big credit card issuers. JD Powers' 2009 Credit Card Satisfaction Study reports that American Express and Discover get higher scores than competitors. A lesser known issuer called National City also gets a decent score.

Among the big issuers, the worst scores went to Capital One and Bank of America. Both rank significantly below average.

But the absolute lowest scores went to two small issuers who target those with poor credit: First Premier Bank and Credit One Bank. General Electric, another large issuer of private label cards, also got very poor marks.

Again, if you have good credit, Clark wants you to get out there and shop the market. Look at your credit union first, then look at American Express and Discover.

What others are saying

AmEx DOES RAISE rates
We have had Amex for several years.. paid on time and have excellent credit.. you would think they'd want to keep us as a customer, but No! They raised our interest rate from about 11% to 28%! about 6 months ago. We called to complain, and they lowered it back to 11%. We did not look at the interest rate closely for a couple of months, and then we checked it again, just to make sure it was still 11%, it was NOT, it had been raised again, back to the 28%. This time we just cancelled the card.
By Chris @ 10/10/09 09:34:58 AMreport abuse
AmEx Rewards for Travel are useless
I have tried to use my American Express rewards for booking travel and guess what, they have made it so difficult to redeem. Customer Service told me to ring the individual Airlines to find out if my rewards can be used with them, she was not sure which airlines took them and how many rewards I needed for the flights. Also, she insisted that I book through the Amex website, but the fares were ridiculous. Unlike, Capital One where the rewards can be redeemed against a travel purchase made anywhere (no hassle) and with a fixed scale to show the rewards needed for a specific price range.
By Sun Pat @ 09/29/09 11:34:20 PMreport abuse
I can bull on this survey.
I HAD accounts with both companies until recently when they told me my rate would be doubled. I paid off the small balance on both and told them to hang it in their ears. I have 780+ credit and have never had a late payment or problem. I felt that their choice to be greedy and unfair to a faithful customer was unacceptble and I would take my business elsewhere. I only use USAA visa now. I would not go back to AE or D EVER!!!!!
By Ryan @ 09/13/09 12:36:22 AMreport abuse
USAA is the way to go
I have been with USAA since 1992. Banking is great, insurance is better if you can get it.
By Leaux @ 09/07/09 10:38:09 PMreport abuse
cc rewards
which charge card has the best flight rewards? i use Chase.
By ed @ 09/07/09 07:07:09 PMreport abuse
*claps for what Chris said*
I agree. Be a "convenience user" as much as humanly possible.

Chris mentions car and house. I would also say that the only revolving debt in a rare exception would be a hospital bill for a catastrophic illness. Another possibly would be student loans if you are studying a field that is employable (RN, data systems analyst, etc) or has promise of it after the recession.
By Chiliheadwizard @ 09/07/09 12:42:25 PMreport abuse
Care Program with American Express
I was set up on the American Express care program when our income drastically decreased. It was to be taken out of my checking account every month($90.00) with 0% financing for 6 months and after that the next 6 months would be 9.99%. tHE CSR did not set the debit up except for the first month and after it was not paid the second month they kicked me out of the program.They doid not call, send me a letter or anything. I did receieve statements , but thinking that everything was okay I did not open them. They stated that it was never set up to be taken out every month and there was nothing they could do. They have been very rude and very uncooperative with me. Now I am $500.00 behind and they are threatening to raise my % rate and also want me to pay the full amount to get caught up. They also can not provide the tape of the conversation where we originally set up the payments to be deducted. I would never recomend American Express for anyone. I am still looking at options and trying to work this out, but hVE HAD NO SUCCESS WITH A COMPANY WHO MADE THE MISTAKE IN THE FIRST PLACE...
By Betty Smith @ 09/07/09 10:10:09 AMreport abuse
discover
Discover card one of the best. Baloney. I was .52 short of the $50 minimum for cash back. Call Discover to see if they would help me with my .52 short fall. After having their card for 15+ years I was told they would not make any exceptions. Thanks Discover.
By l jones @ 09/07/09 10:06:04 AMreport abuse
What a croq!!
Read the money/dumb debt/financial crisis boards for "different" opinions about AMEX.

How can CH promote this when AMEX misbehaves over and over again?

Best solution: No credit card at all.
By Kveg @ 09/07/09 09:28:36 AMreport abuse
American Express Named Best Credit Card Issuers? On Which Planet?
I agree with Bill...Have been a loyal CC holder for 8+ years, with never a missed or late payment...9.99% interest rate for 7 years then, jacked up to 12.99% 6 months ago and then the infamous letter in August stating the rates are going up again to prime + 6.99%...ONE WORD TO DESCRIBE THEIR ACTIONS...THIEVERY!

Considering I have a 790 credit score...this can only be viewed as PURE greed...I for one, will be switching to a lower interest rate with one of our local banks that actually CARES about it's customers...

Take a hike AMEX...you have your greedy hands out like the rip off oil companies and like so many companies that have since either gone under or are looking for government stimulus help and I for one, will not contribute further to lining your pockets with profits!

American Express should be ashamed of themselves...and any right-minded consumer should run in the opposite direction when either receiving credit solicitations or who currently have accounts with them.
By Kevin @ 09/05/09 11:09:59 PMreport abuse
Discover is great
I get 1% back normally on purchases and then 5% back on monthly changing special bonus from certain types of merchants.. Gas stations some months, groceries other months, hotels other months.

I got $250 back last year.. I pay them off every month.. I charge everything through the discover to maximize the rebate..
By Emo @ 09/04/09 05:26:36 PMreport abuse
Credit card debt
Great for you, Chris. Wish I was out of debt, but I am not. I have to concentrate on how things ARE, not how I wish they were. It does not help when the cc copmpanies are trying to rob you.
By Bill Reynolds @ 09/04/09 03:25:52 PMreport abuse
American Express
They WERE great. Now they SUCK.
Changed my rate to variable -prime+6.99.
I was at 6.99 fixed. I have a large balance and was not given opportunity to opt-out. My payment record is perfect. This new law has hurt those with existing balances.The banks are so geedy, it makes my skin crawl.
By Bill Reynolds @ 09/04/09 03:21:54 PMreport abuse
Chase is a ripoff
I agree with Mike. Chase is very deceitful with Credit cards. I'm so angry with them that I'm moving my CD when it comes due. By the way they rolled my CD into another CD that pays less then their savings account. I could not get to them in time during the grace period because my mom has cancer and I was taking care of her. They would not let me get my money without incurring the penalties.
By california dude @ 09/03/09 02:29:02 AMreport abuse
Credit card issuers
I have three different credit accounts with Chase, which I have had for many years. I recently received a notice in the mail that Chase MAY raise their minimum monthly payment rates on outstanding balances. I didn't think any more about the notice because I assumed that these changes would apply to those who are late or behind on their payments, or don't make at least the minimum payment. How wrong I was! I received my three statements this week and Chase raised my minimum monthly payment by 250%! I just got off the phone with a Chase supervisor. I explained that I had been a loyal customer for many years, always made my payments at least 10 days before the due date, and always paid at least 50% more than the minimum payment. The supervisor started feeding me a lot of garbage that Chase was trying to help the consumer pay off their balances in a shorter period of time and their action will benefit the customer in the long run. She also said that I could keep my monthly minimum payment lower by increasing my current 2.99% interest rate to 7.9%. I told her that neither option was acceptable and that if Chase was trying to help their customers in these trying times, they would lower the rate even more. She then made the mistake of saying that the law allows them to raise their rates to the maximum before the new laws take effect in February. So, Chase should be added to the list of worst credit card companies to deal with. I'm switching to Discover.
By Mike @ 09/02/09 07:43:40 PMreport abuse
American Express
I have excellent credit and I too got that repulsive letter from American Express, saying my interest rate was going up. This was after they lowered my credit limit twice - for no reason. NO late payments etc. And if you get mad and close it, then every month the credit bureau will show that you are at 100% of your limit for American Express, so your Credit report takes a hit. Robbery!
By Priscilla @ 09/02/09 06:03:21 PMreport abuse
Debt Free
I couldn't tell you the interest rate on any of my credit cards. I only know there is no annual fee, the rewards are decent and I NEVER carry a balance. I'm currently using the Charles Schwab VISA because of the 2% cash back promotion.

Most people need to wake up and use credit to their advantage and NOT to their demise. IF YOU CAN'T AFFORD TO BUY IT WITH CASH...YOU CAN'T AFFORD TO BUY IT!!! I know this sounds simplistic but for 99% of your purchases (minus car & house) this is the only safe way to live. I learned this 10 yrs. ago and it's driven me to eliminate ALL debt including my mortgage by the age of 40. I don't have a ton of retirement savings but I'm working on that now. All I can tell you is there is absolutely NO financial stress in my life and it's beautiful!!!
By Chris @ 09/02/09 01:48:40 PMreport abuse
BRUTAL TRUTH
JD Powers is indeed a shill....just like MOTOR TREND, POP MECHANICS etc are cheap shills for the auto makers that spend millions in ads with them.....you can only trust CONSUMER REPORTS.....
By CONSUMERWARRIOR @ 09/02/09 01:00:38 PMreport abuse
can't be
I thought this was a joke Clark. These are the only two companies I've ever used that have raised their rates are added fees for no reason. Many places won't except them either.
By Carl @ 09/02/09 09:52:43 AMreport abuse
Credit Cards
I don't care what they charge me in interest, I pay it off every month, I just go after the cash back, no miles just cash
By Guy @ 09/01/09 09:53:15 PMreport abuse
J.D. Powers
I don't trust J.D. Powers.
By Kilduff @ 09/01/09 07:55:58 PMreport abuse
JD Power = Irrelevant
JD Power is just a shill for big corporations.
The best credit card issuers are credit unions.
By Banks SUCK @ 09/01/09 07:03:51 PMreport abuse
American Express
I assume this report was filed prior to the 24 Million letters they sent out prior to August 20th detailing their rate increases - even for customers with excellent credit and payment histories.
By P. @ 09/01/09 04:24:27 PMreport abuse

AmEx DOES RAISE rates

We have had Amex for several years.. paid on time and have excellent credit.. you would think they'd want to keep us as a customer, but No! They raised our interest rate from about 11% to 28%! about 6 months ago. We called to complain, and they lowered it back to 11%. We did not look at the interest rate closely for a couple of months, and then we checked it again, just to make sure it was still 11%, it was NOT, it had been raised again, back to the 28%. This time we just cancelled the card.

By Chris @ 10/10/09 09:34:58 AMreport abuse

AmEx Rewards for Travel are useless

I have tried to use my American Express rewards for booking travel and guess what, they have made it so difficult to redeem. Customer Service told me to ring the individual Airlines to find out if my rewards can be used with them, she was not sure which airlines took them and how many rewards I needed for the flights. Also, she insisted that I book through the Amex website, but the fares were ridiculous. Unlike, Capital One where the rewards can be redeemed against a travel purchase made anywhere (no hassle) and with a fixed scale to show the rewards needed for a specific price range.

By Sun Pat @ 09/29/09 11:34:20 PMreport abuse

I can bull on this survey.

I HAD accounts with both companies until recently when they told me my rate would be doubled. I paid off the small balance on both and told them to hang it in their ears. I have 780+ credit and have never had a late payment or problem. I felt that their choice to be greedy and unfair to a faithful customer was unacceptble and I would take my business elsewhere. I only use USAA visa now. I would not go back to AE or D EVER!!!!!

By Ryan @ 09/13/09 12:36:22 AMreport abuse

USAA is the way to go

I have been with USAA since 1992. Banking is great, insurance is better if you can get it.

By Leaux @ 09/07/09 10:38:09 PMreport abuse

cc rewards

which charge card has the best flight rewards? i use Chase.

By ed @ 09/07/09 07:07:09 PMreport abuse

*claps for what Chris said*

I agree. Be a "convenience user" as much as humanly possible.

Chris mentions car and house. I would also say that the only revolving debt in a rare exception would be a hospital bill for a catastrophic illness. Another possibly would be student loans if you are studying a field that is employable (RN, data systems analyst, etc) or has promise of it after the recession.

By Chiliheadwizard @ 09/07/09 12:42:25 PMreport abuse

Care Program with American Express

I was set up on the American Express care program when our income drastically decreased. It was to be taken out of my checking account every month($90.00) with 0% financing for 6 months and after that the next 6 months would be 9.99%. tHE CSR did not set the debit up except for the first month and after it was not paid the second month they kicked me out of the program.They doid not call, send me a letter or anything. I did receieve statements , but thinking that everything was okay I did not open them. They stated that it was never set up to be taken out every month and there was nothing they could do. They have been very rude and very uncooperative with me. Now I am $500.00 behind and they are threatening to raise my % rate and also want me to pay the full amount to get caught up. They also can not provide the tape of the conversation where we originally set up the payments to be deducted. I would never recomend American Express for anyone. I am still looking at options and trying to work this out, but hVE HAD NO SUCCESS WITH A COMPANY WHO MADE THE MISTAKE IN THE FIRST PLACE...

By Betty Smith @ 09/07/09 10:10:09 AMreport abuse

discover

Discover card one of the best. Baloney. I was .52 short of the $50 minimum for cash back. Call Discover to see if they would help me with my .52 short fall. After having their card for 15+ years I was told they would not make any exceptions. Thanks Discover.

By l jones @ 09/07/09 10:06:04 AMreport abuse

What a croq!!

Read the money/dumb debt/financial crisis boards for "different" opinions about AMEX.

How can CH promote this when AMEX misbehaves over and over again?

Best solution: No credit card at all.

By Kveg @ 09/07/09 09:28:36 AMreport abuse

American Express Named Best Credit Card Issuers? On Which Planet?

I agree with Bill...Have been a loyal CC holder for 8+ years, with never a missed or late payment...9.99% interest rate for 7 years then, jacked up to 12.99% 6 months ago and then the infamous letter in August stating the rates are going up again to prime + 6.99%...ONE WORD TO DESCRIBE THEIR ACTIONS...THIEVERY!

Considering I have a 790 credit score...this can only be viewed as PURE greed...I for one, will be switching to a lower interest rate with one of our local banks that actually CARES about it's customers...

Take a hike AMEX...you have your greedy hands out like the rip off oil companies and like so many companies that have since either gone under or are looking for government stimulus help and I for one, will not contribute further to lining your pockets with profits!

American Express should be ashamed of themselves...and any right-minded consumer should run in the opposite direction when either receiving credit solicitations or who currently have accounts with them.

By Kevin @ 09/05/09 11:09:59 PMreport abuse

Discover is great

I get 1% back normally on purchases and then 5% back on monthly changing special bonus from certain types of merchants.. Gas stations some months, groceries other months, hotels other months.

I got $250 back last year.. I pay them off every month.. I charge everything through the discover to maximize the rebate..

By Emo @ 09/04/09 05:26:36 PMreport abuse

Credit card debt

Great for you, Chris. Wish I was out of debt, but I am not. I have to concentrate on how things ARE, not how I wish they were. It does not help when the cc copmpanies are trying to rob you.

By Bill Reynolds @ 09/04/09 03:25:52 PMreport abuse

American Express

They WERE great. Now they SUCK.
Changed my rate to variable -prime+6.99.
I was at 6.99 fixed. I have a large balance and was not given opportunity to opt-out. My payment record is perfect. This new law has hurt those with existing balances.The banks are so geedy, it makes my skin crawl.

By Bill Reynolds @ 09/04/09 03:21:54 PMreport abuse

Chase is a ripoff

I agree with Mike. Chase is very deceitful with Credit cards. I'm so angry with them that I'm moving my CD when it comes due. By the way they rolled my CD into another CD that pays less then their savings account. I could not get to them in time during the grace period because my mom has cancer and I was taking care of her. They would not let me get my money without incurring the penalties.

By california dude @ 09/03/09 02:29:02 AMreport abuse

Credit card issuers

I have three different credit accounts with Chase, which I have had for many years. I recently received a notice in the mail that Chase MAY raise their minimum monthly payment rates on outstanding balances. I didn't think any more about the notice because I assumed that these changes would apply to those who are late or behind on their payments, or don't make at least the minimum payment. How wrong I was! I received my three statements this week and Chase raised my minimum monthly payment by 250%! I just got off the phone with a Chase supervisor. I explained that I had been a loyal customer for many years, always made my payments at least 10 days before the due date, and always paid at least 50% more than the minimum payment. The supervisor started feeding me a lot of garbage that Chase was trying to help the consumer pay off their balances in a shorter period of time and their action will benefit the customer in the long run. She also said that I could keep my monthly minimum payment lower by increasing my current 2.99% interest rate to 7.9%. I told her that neither option was acceptable and that if Chase was trying to help their customers in these trying times, they would lower the rate even more. She then made the mistake of saying that the law allows them to raise their rates to the maximum before the new laws take effect in February. So, Chase should be added to the list of worst credit card companies to deal with. I'm switching to Discover.

By Mike @ 09/02/09 07:43:40 PMreport abuse

I have excellent credit and I too got that repulsive letter from American Express, saying my interest rate was going up. This was after they lowered my credit limit twice - for no reason. NO late payments etc. And if you get mad and close it, then every month the credit bureau will show that you are at 100% of your limit for American Express, so your Credit report takes a hit. Robbery!

By Priscilla @ 09/02/09 06:03:21 PMreport abuse

Debt Free

I couldn't tell you the interest rate on any of my credit cards. I only know there is no annual fee, the rewards are decent and I NEVER carry a balance. I'm currently using the Charles Schwab VISA because of the 2% cash back promotion.

Most people need to wake up and use credit to their advantage and NOT to their demise. IF YOU CAN'T AFFORD TO BUY IT WITH CASH...YOU CAN'T AFFORD TO BUY IT!!! I know this sounds simplistic but for 99% of your purchases (minus car & house) this is the only safe way to live. I learned this 10 yrs. ago and it's driven me to eliminate ALL debt including my mortgage by the age of 40. I don't have a ton of retirement savings but I'm working on that now. All I can tell you is there is absolutely NO financial stress in my life and it's beautiful!!!

By Chris @ 09/02/09 01:48:40 PMreport abuse

BRUTAL TRUTH

JD Powers is indeed a shill....just like MOTOR TREND, POP MECHANICS etc are cheap shills for the auto makers that spend millions in ads with them.....you can only trust CONSUMER REPORTS.....

By CONSUMERWARRIOR @ 09/02/09 01:00:38 PMreport abuse

can't be

I thought this was a joke Clark. These are the only two companies I've ever used that have raised their rates are added fees for no reason. Many places won't except them either.

By Carl @ 09/02/09 09:52:43 AMreport abuse

Credit Cards

I don't care what they charge me in interest, I pay it off every month, I just go after the cash back, no miles just cash

By Guy @ 09/01/09 09:53:15 PMreport abuse

J.D. Powers

I don't trust J.D. Powers.

By Kilduff @ 09/01/09 07:55:58 PMreport abuse

JD Power = Irrelevant

JD Power is just a shill for big corporations.
The best credit card issuers are credit unions.

By Banks SUCK @ 09/01/09 07:03:51 PMreport abuse

I assume this report was filed prior to the 24 Million letters they sent out prior to August 20th detailing their rate increases - even for customers with excellent credit and payment histories.

By P. @ 09/01/09 04:24:27 PMreport abuse

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Sep 01, 2009 -- American Express, Discover named as best credit card issuers

What others are saying