2013 Banking and Credit Card Survey

2013 Banking and Credit Card Survey
©Credit Reporting Agency Limited 2014
About Credit Reporting Agency
Credit Reporting Agency is the UK’s first internet based credit reference agency, aimed firmly at serving
consumers, rather than business users. It leads the UK market in the provision of online credit file based
services and provides consumers with easy access to information on three websites:
checkmyfile was first in the UK:
- to provide consumers with online access to their credit files;
- to offer consumers the ability to check their own credit score for free and to give plain English explanations of
how credit scoring works.
givemecredit was first in the UK:
- to match lenders to consumer credit ratings for free, using credit scores, to help consumers find the cheapest
deals and to reduce the risks of being declined;
- to publish fully independent reviews of credit card and loan lenders based on expert evaluation and
consumer feedback of customer service experience.
annualcreditreport.co.uk was first in the UK:
- to provide free annual credit reports to consumers to encourage more to check the quality of the information
held about them, and to guard against the increasing threat of identity theft;
- to provide free identity theft prevention services.
About this survey
Each year since 2005, Credit Reporting Agency has asked its customers to rate their bank or credit card
company.
Respondents are incentivised by an invitation to enter a prize draw. This year two respondents were each
randomly selected to receive an Apple iPad-Mini.
Credit Reporting Agency uses the results to ensure that when suggesting financial institutions to its customers
on any of its websites, it can give a consumer focussed assessment of the service levels likely to be provided.
By using credit scoring, it also ensures that applicants are matched to lenders who are most likely to say yes, so
the risks of being declined are minimised.
2,591 people took part in this survey. Responses were processed using surveymonkey.com and analysed by
Credit Reporting Agency.
This analysis was published on 17 January 2014.
©Credit Reporting Agency Limited 2014
Summary of Survey Results
This year’s survey results offer hope that banks and credit card providers are getting their act
together and collectively improving their levels of customer service. The general financial outlook
amongst respondents improved slightly for the second year in a row.
-
71% of bank customers rated the service they receive as very good or excellent, up from
66% last year, and the proportion of respondents rating their credit card provider similarly
increased from 64% to 68%.
-
The number of respondents who felt strongly enough never to recommend a particular bank
or credit card to a friend dropped to 40%, down from 44% last year.
-
Credit cards with ‘rewards’ programmes have shown a considerable increase in popularity in
the last year and are now rated as the top reason for using a particular card, ahead of
cashback and convenience.
-
Almost 80% of people said that their finances are in the same, or in a better position than
they were a year ago.
It will come as little surprise to learn that First Direct came out top of the pile for customer service
ratings amongst banks – the sixth successive year it has taken the crown. Despite holding a third of
market share between them, Santander and Lloyds TSB finished 9th and 10th respectively.
American Express was rated as the top credit card for customer service, with Tesco making a
noticeable improvement. Lloyds TSB credit cards customers were also far from glowing about the
customer service they receive, giving it the unwanted position of bottom of the pile in credit cards as
well as banking.
©Credit Reporting Agency Limited 2014
Credit cards
Do you have at least one credit card?
No, 15%
Yes, 85%
I used to have one,
but the card isssuer
closed the account,
8%
Why don't you have a credit card?
I'm worried about
staying in control
of my spending,
13%
My credit rating
means I can't get
one, 44%
I just don't need
one, 35%
©Credit Reporting Agency Limited 2014
If your credit rating were to improve, do you think you would
get a credit card for day-to-day use?
Yes, if my credit
rating were to
improve, I'd
definitely want a
credit card, 31%
It would have to be
a really good offer to
tempt me to get a
card, 37%
No, my past
experience with a
credit card has put
me off, 32%
And do you use it regularly, or just as an emergency back-up?
I'm just paying off a
previous balance,
13%
It's only
there as an
emergency
back-up,
18%
I only use it for work
expenses, 1%
I use it regularly to
pay for good or
services, 68%
©Credit Reporting Agency Limited 2014
Why has your opinion of your credit card provider gone
down?
Turned me down
for an additional
They have moved
product/wouldn't
their call centre increase my credit
overseas, 4%
limit, 3%
My credit limit was
reduced
unexpectedly, 2%
Poor treatment of a
friend/I've heard
bad things about
them elsewhere, 1%
Repeated
mistakes, 10%
My standard APR
was increased, 23%
Too many charges,
17%
Generally worse
customer service,
20%
Lack of help when I
really needed it,
20%
The proportion of respondents citing an increase in standard APR as the reason for their opinion of
their credit card provider going down has increased from 18% in 2012 to 23% this year.
©Credit Reporting Agency Limited 2014
Why has your opinion of your credit card provider gone up?
Their rewards
programme has
improved, 13%
They've reduced my
standard APR, 5%
General
improvement in
customer service,
41%
They helped me
when I really
needed it, 20%
They've given me
the credit limit I
needed, 21%
Have you applied for a new bank account or credit card in
the last 12 months?
Yes, 37%
No, 63%
©Credit Reporting Agency Limited 2014
Was your application approved or turned down?
I was declined, 34%
I was accepted, 66%
A reduction in the number of credit applications that were accepted – dropping from 71% in 2012 to
66% this year.
Did you give specific consideration to your credit rating when
deciding which bank or lender to apply to?
No, 50%
Yes, 50%
To coincide with the drop in the proportion of successful applications, the number of respondents
who gave particular consideration to their credit rating before applying also fell, from 54% to 50%.
©Credit Reporting Agency Limited 2014
Is there a particular bank or credit card that you will never
use again or recommend to a friend?
Yes there is , 40%
No, I don't feel that
strongly, 60%
A decrease on the number of respondents who have very strong negative feelings about a particular
lender - falling from 44% last year to 40% this time around.
©Credit Reporting Agency Limited 2014
Is there a particular reason for your strong negative feelings?
Aggressive debt
chasing or selling on
of debts, 4%
No reward for
being a loyal
customer, 3%
Repeated mistakes,
for example with
Direct Debits, 4%
I feel that APR is
ridiculously high,
10%
Constant selling of
other, unwanted
products and
services, 2%
Very poor customer
service, 27%
Complete
incompetence, 14%
Reason not given,
14%
Excessive and unfair
charges, 13%
They offered no
understanding or
assistance when
I was in financial
difficulty, 10%
©Credit Reporting Agency Limited 2014
Would you say that your finances are in a better or worse
position than a year ago?
I'd rather not say, 5%
I'm in a worse
position, 17%
I'm in a better
position, 40%
My finances are
much the same as
they were a year
ago, 38%
An improvement in the average financial position compared to 2012. 40% of respondents consider
themselves to be in a better position than a year ago, compared to 36%, whilst less (17% compared
to 20%) think that they are in a worse position than they were.
©Credit Reporting Agency Limited 2014
What is your main financial goal?
Get a loan for
something else (e.g.
I'm saving towards a
a kitchen)
big holiday
2%
5%
Remortgage to a
Get a car loan
better deal
1%
I'm saving for a new
3%
car/other big
purchase
7%
I'm aiming to pay off
Get a mortgage
debt
8%
32%
I hope to improve
my credit rating
12%
I've got no particular
plan/goal
30%
There has been no significant change in the financial goals that respondents have, with paying off
debt and improving their credit rating remaining the two most popular targets.
©Credit Reporting Agency Limited 2014