October 2007
The details
The USAA card is limited to members of the military, retired military personnel, and their families. However, almost anyone
can join a credit union these days, and it might be a good idea, if only for a good credit card.
Years ago, credit-union membership was restricted to people who were closely connected in some way: They worked for the same employer, lived in the same town, or attended the same house of worship. But regulators have loosened many of the membership restrictions, so people can now join the same credit union if they work in the same industry, live in the same general geographic area, or share a common religion.
Two retailers--Cabela's, which sells sporting equipment, and Nordstrom, an upscale department store--also scored very well. Both companies charge average interest rates on their Visa cards and have a long history of superior customer service. For example, both promise 100 percent satisfaction on purchases and will accept returns or exchanges for any reason. Nordstrom even pays the postage for exchanges sent through the mail.
At the other end of the spectrum, the two issuers at the bottom of our Ratings (available to subscribers), Providian and Direct Merchants, charged the highest median interest rates reported in our survey: 17 percent. Survey respondents gave Providian the worst marks for unexpected interest-rate hikes. Providian cardholders reported that they had more trouble with bills that arrived too late for them to get their payments in on time or were more likely to be assessed late fees even when they sent their payments a week before the due date.
The nation's five largest MasterCard and Visa issuers--JPMorgan Chase, Bank of America, Citibank, Capital One, and HSBC, which control almost 80 percent of the Visa and MasterCard market--all had undistinguished scores. More of our readers who used those banks' cards complained that they were assessed unfair late fees or experienced unexpected interest-rate increases than did readers who held cards from the top-rated issuers. And none of them was exceptional at resolving problems.
Years ago, credit-union membership was restricted to people who were closely connected in some way: They worked for the same employer, lived in the same town, or attended the same house of worship. But regulators have loosened many of the membership restrictions, so people can now join the same credit union if they work in the same industry, live in the same general geographic area, or share a common religion.
Two retailers--Cabela's, which sells sporting equipment, and Nordstrom, an upscale department store--also scored very well. Both companies charge average interest rates on their Visa cards and have a long history of superior customer service. For example, both promise 100 percent satisfaction on purchases and will accept returns or exchanges for any reason. Nordstrom even pays the postage for exchanges sent through the mail.
At the other end of the spectrum, the two issuers at the bottom of our Ratings (available to subscribers), Providian and Direct Merchants, charged the highest median interest rates reported in our survey: 17 percent. Survey respondents gave Providian the worst marks for unexpected interest-rate hikes. Providian cardholders reported that they had more trouble with bills that arrived too late for them to get their payments in on time or were more likely to be assessed late fees even when they sent their payments a week before the due date.
The nation's five largest MasterCard and Visa issuers--JPMorgan Chase, Bank of America, Citibank, Capital One, and HSBC, which control almost 80 percent of the Visa and MasterCard market--all had undistinguished scores. More of our readers who used those banks' cards complained that they were assessed unfair late fees or experienced unexpected interest-rate increases than did readers who held cards from the top-rated issuers. And none of them was exceptional at resolving problems.
