With social restrictions and business closures, Aussies are spending less on their credit card than they used to.
In fact, according to the recent 2020 Australia Credit Card Satisfaction Study conducted by data analytics and consumer intelligence company J.D. Power, 42% of customers claim their credit card usage has gone down.
As a result, it has caused over a quarter of cardholders (27%) to be dissatisfied with their current card, as it either no longer meets their needs (16%) or they need more credit (11%).
The study also found that since the outbreak of COVID-19, almost one in five respondents (19%) can no longer make their minimum monthly credit card repayment.
“People are relying on their credit cards to help cashflow, which makes it even more important that they are suitably matched to the right cards,” Bronwyn Gill, head of banking and payments intelligence at J.D. Power Australia said.
“While a strong mismatch was occurring before the pandemic, the change in spending habits is heightening this disconnect, affecting reward accumulation and perceived value. Cardholders are evaluating the existing cards they hold, and issuers need to ensure they are creating value for their customers to weather this storm.”
While rewards programs play a crucial role in determining many credit cards’ value, in particular, 63% of airline associated credit card holders have spending habits that now don’t match the benefits available to them on their card.
This is a result of the pandemic’s devastating impact on the airline industry, as both international and domestic travel remains restricted.
How do credit card providers stack up?
As part of their 2020 Australia Credit Card Satisfaction Study, J.D. Power also asks Aussie credit card holders which providers they are most happy with.
They compare 20 major credit card issuers and give them scores out of 1,000 based on customers’ experiences across six key factors: interaction, credit card terms, communications, rewards, benefits and services, and key moments.
Here's who came out as this year's top 10:
- Bendigo Bank: 772
- American Express: 743
- St George: 733
- Bank of Queensland (BOQ): 732
- CommBank: 726
- HSBC: 721
- Westpac: 721
- Coles: 719
- Suncorp: 711
- Bankwest: 710
As you can see, CommBank topped the big four coming in at fifth place this year, closely followed by Westpac in seventh place.
However, not all of the big four made the top ten in 2020, with both NAB and ANZ coming in at 11th and 12th place with scores of 708 and 703 respectively.
RELATED ARTICLE: How to use your credit card effectively during COVID-19
Thinking of making the switch to a more satisfactory credit card? Take a peek at the table below for some killer options or jump over to our credit card comparison tool for more!
Credit Cards 2020 - last updated November 28, 2020
Westpac Low Rate
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CUA Low Rate Credit Card
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ME frank Credit Card
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Defence Bank Foundation Credit Card
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CUA Platinum Credit Card
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