Most Consumers Feel Well-Informed by Credit Card Applications

WESTBURY, N.Y.--(BUSINESS WIRE)--Credit card companies are meeting consumer expectations, according to
research recently published in Cardbeat®,
the syndicated market research report from Auriemma Consulting Group
(ACG). When consumers apply for credit cards, they understand the
benefits they will receive and the implications of borrowing funds
through card-issuing banks.

Responding to questions about credit card applications, 58% of survey
respondents agreed that they feel well-informed about credit cards and
their benefits before deciding to apply for new plastic. Thirty-five
percent of all participants agreed completely that the information
offered was exemplary, giving it a rating of 10 out of 10.

“Despite the perception, consumers do not feel
they are having the ‘wool pulled over their
eyes’ by credit card companies,”
says Megan Bramlette, managing editor of Cardbeat. “In
general, consumers are pleased with the credit card application process.”

Another finding of the research: Only a third of consumers applying for
a new credit card do so after researching cards available to them.
Nearly half of applicants apply for a new credit card spontaneously,
with no prior thought given to obtaining an additional card. “Credit
card companies have the opportunity to grow their customer bases by
presenting consumers with compelling offers,”
Bramlette says.

“Security of personal information in the
processing of a credit card application, timeliness of response and
clarity of the application form are the costs of doing business,”
she says. “Overwhelmingly, card companies are
meeting consumers’ expectations in these
areas.” Issuers also scored well regarding
the time in which they approve or deny applicants, their commitment to
keeping applicant data private, and the simplicity of application forms.

The information in this release came from a survey of 408 credit card
users in February 2007.

ACG is a management consulting firm in the payments and lending
industry. Cardbeat is a syndicated market research study from ACG that
provides insight into how consumer perceptions impact credit card
acquisition and usage.