Borrow
Customer credit card habits are changing
More credit card holders in Australia are ditching multiple cards in favour of a single one, new research has found.
Customer credit card habits are changing
More credit card holders in Australia are ditching multiple cards in favour of a single one, new research has found.
According to a 2019 Australian credit card satisfaction study undertaken by J.D. Power, the number of cardholders with only one credit card has increased to 61 per cent in 2019, up from 56 per cent in 2018.
Bronwyn Gill, the head of global business intelligence at J.D. Power, said “an overwhelming number of cardholders use fewer than three types of benefits and services, so issuers should focus on quality instead of quantity”.
She said credit providers will need to work to tailor their benefits and services based on cardholders’ evolving needs, which will ultimately benefit consumers.
Growth of ‘buy now, pay later’ services
J.D. Power’s research also found that there is a shrinking demand for credit cards in Australia, which coincides with a rise in alternative instalment services.
More than one in five cardholders have utilised buy now, pay later services, according to the study, with younger cardholders adopting the method of payment three times faster than other cardholders.
According to J.D. Power, while traditional issuers still lead the market, their dominance cannot be taken for granted in the long term.
Mobile app usage rate plateau
Less than half of cardholders indicated usage of their credit card mobile app in the past 12 months, the research showed, with J.D. Power considering this as a concern for card issuers that have placed a strong emphasis on the digital experience.
Credit limit increase offers still common
Concerningly, the report also showed that 57 per cent of cardholders who were offered credit card limit increases said such offers were unsolicited.
This is despite the 2018 introduction of legislation that prohibited unsolicited credit card limit increases.
Reading the fine print
Less than half of cardholders have read the terms and conditions on their primary card, it was also flagged in the report.
Reasons given for the lack of knowledge were attributed to the length of the text, or customers not fully understanding the terms and conditions or what they were reading.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Credit card
Are you paying too much on your credit card?
Despite the COVID-19 pandemic leading to an increase in card usage and a greater propensity to save, Aussies are still unaware of their credit card’s interest rate, new research has revealed. ...Read more
Credit card
Controversial cashless welfare program continues for another 2 years
The Morrison government has announced an extension on the controversial cashless debit card scheme for a further two years. ...Read more
Credit card
Credit card debt falls to lowest levels since 2004
Early access to superannuation, a lack of places to spend money and low consumer confidence has seen Australians pay off $6.3 billion in credit since the pandemic began, new research has revealed. ...Read more
Credit card
Is it time to check your credit score?
Australian consumers who are looking to get a loan are being urged to recheck their credit score, with financial hardships and changing income statements likely to have an impact on their overall abil...Read more
Credit card
CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card. ...Read more
Credit card
Interest-free credit cards hit Australia
One of the big four banks will now offer the first-ever no-interest credit card targeted at younger Australians who are ditching credit for buy now, pay later services. ...Read more
Credit card
Personal and business credit cards: What’s the difference?
With more Australians taking on contract and gig work in the COVID-19 downturn, more people are likely to be tossing up whether or not to use a personal or a business credit card, so what’s the diff...Read more
Credit card
9 tips to stop the credit card debt cripple
With debt levels expected to rise in the coming months due to COVID-19-related financial pressures, one expert has offered up some handy tips to stop Australians from being inundated by crippling cred...Read more
Credit card
Are you paying too much on your credit card?
Despite the COVID-19 pandemic leading to an increase in card usage and a greater propensity to save, Aussies are still unaware of their credit card’s interest rate, new research has revealed. ...Read more
Credit card
Controversial cashless welfare program continues for another 2 years
The Morrison government has announced an extension on the controversial cashless debit card scheme for a further two years. ...Read more
Credit card
Credit card debt falls to lowest levels since 2004
Early access to superannuation, a lack of places to spend money and low consumer confidence has seen Australians pay off $6.3 billion in credit since the pandemic began, new research has revealed. ...Read more
Credit card
Is it time to check your credit score?
Australian consumers who are looking to get a loan are being urged to recheck their credit score, with financial hardships and changing income statements likely to have an impact on their overall abil...Read more
Credit card
CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card. ...Read more
Credit card
Interest-free credit cards hit Australia
One of the big four banks will now offer the first-ever no-interest credit card targeted at younger Australians who are ditching credit for buy now, pay later services. ...Read more
Credit card
Personal and business credit cards: What’s the difference?
With more Australians taking on contract and gig work in the COVID-19 downturn, more people are likely to be tossing up whether or not to use a personal or a business credit card, so what’s the diff...Read more
Credit card
9 tips to stop the credit card debt cripple
With debt levels expected to rise in the coming months due to COVID-19-related financial pressures, one expert has offered up some handy tips to stop Australians from being inundated by crippling cred...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
