Comscore Releases Online Credit Card Report 2009 Edition
RESTON, VA, December 14, 2009 – Comscore, Inc. (NASDAQ : SCOR), a leader in measuring the digital world, today released its Online Credit Card Report: 2009 Edition. The report provides an in-depth view of the online credit card industry, with a particular focus on how the economic environment, government regulation and industry response have affected consumer behavior and confidence. Among its findings, the report revealed that more than two-thirds of consumers have responded to changes in their credit card terms and conditions by reducing spending behavior, terminating the account or switching brands.
“This past year has been very volatile in the credit card industry, both for issuers and consumers,” said Kevin Levitt, Comscore vice president. “With the economic environment and regulatory mandates prompting issuers to make product adjustments, an already financially-sensitive consumer is responding with dissatisfaction and an increasingly negative perception of their card issuer. Understanding the current sentiment and common concerns among consumers will be critical to success over the next year”
When Faced with Issuer Changes, Consumers Most Likely to Spend Less with Credit Card
The economic downturn combined with revived transparency regulations in the credit card industry have caused issuers to make changes to consumers’ credit card accounts. The Comscore report found that half of consumers have noticed direct changes to their accounts made by their issuer including an increase in APR/interest rate, reduced credit limit, additional fees, etc.
These changes have caused many consumers to lose confidence in their issuer and take direct action. Among survey respondents who have noted such changes in the last year, 55 percent indicated that they have decreased the amount they spend using that particular card, while 27 percent no longer use that card for purchases. Twelve percent of respondents have closed that account, while 9 percent applied for a new credit card with another issuer and 8 percent transferred their balance to another card. Just 3 percent reported spending more on that card.
Question: Have any of these changes made by your credit card issuer, caused you to take any of the following actions within the last year? (Check all that apply)October 2009Total U.S – Home/Work LocationSource: Comscore, Inc. Credit Card Survey
I spend less on that card
55%
No longer use that card for my purchases
27%
Closed my account
12%
Applied for a new credit card with another issuer
9%
Transferred my balance to another card
8%
Applied for a new credit card with that issuer
4%
I spend more on that card
3%
None of these
32%
“In the current economic environment, many customers are taking strong action in response to changes made by their credit card issuer,” added Mr. Levitt. “Issuers must work to provide additional value or risk consumer backlash in the form of reduced card spending or even brand defection.”
To download a complimentary copy of the Comscore Online Credit Card Report: 2009 Edition, please visit: http://www.comscore.com/Press_Events/Presentations_Whitepapers/2009/2009_Comscore_Online_Credit_Card_Report
About Comscore
Comscore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital marketing intelligence. For more information, please visit www.comscore.com/companyinfo.
Contact:Sarah RadwanickDirector, Regional Product MarketingComscore, Inc. +44 (0) 20 7099 1784worldpress@comscore.com