Inflation and high interest rates are still taking a bite out of the pockets of most consumers this year. It should be little surprise that credit card companies are climbing on top of each other to offer the best deals and earn the trust of their customers.
Perhaps as a sign of the times, the credit card company taking top honors in trust from consumers in 2024 managed to dethrone two rivals who have been sharing the top spot over the past three years.
Topping the credit card category in IBD's fifth annual Most Trusted Financial Companies survey is USAA, the firm providing financial services to members of the military, veterans, and their families. USAA ranked third overall on the list of the 30 Most Trusted companies, with a trust index rating of 86.9. And in the credit card category, USAA topped previous champs American Express and Discover.
Discover Financial Services scored highest in 2021, while American Express won in 2022. The two companies tied in their overall trust score for 2023.
Best Credit Card Companies Earn Customer Support
IBD's fifth annual list of the Most Trusted Financial Companies is based on a May-July survey. Thousands of people rated their financial service providers on the trust attributes that consumers said were most important.
For the Most Trusted Financial Companies in 2024, Investor's Business Daily asked survey participants about how they judged the financial soundness of the companies they do business with, along with seven other trust attributes.
The survey was conducted by IBD's polling partner, TechnoMetrica Market Intelligence. For the third year, this special report is being co-branded with IBD's sister publication, MarketWatch.
Four Most Trusted Credit Card Companies
| Company | Overall rating | Soundness | Quality | Privacy | Ethics | Customer service | Prices | Sensitivity to customer needs | Confidence in mgt. |
|---|---|---|---|---|---|---|---|---|---|
| USAA | 86.9 | 91.4 | 86.8 | 89.3 | 89.5 | 84.2 | 78.9 | 83.4 | 85.4 |
| American Express | 85 | 92.8 | 89.4 | 88.4 | 84.3 | 86.3 | 64.3 | 76.7 | 86.3 |
| Discover | 80.6 | 84.6 | 84.6 | 84.5 | 78.1 | 84.1 | 70.2 | 68.9 | 78.7 |
| Capital One | 76.4 | 84.7 | 79.3 | 79 | 73.2 | 77.4 | 66.2 | 65.5 | 74.4 |
Eight credit card companies were included in the survey analysis.
Capital One, which came in fourth among credit card issuers, announced it would acquire Discover in February in an all-stock deal valued at $35.3 billion. If approved by regulators and shareholders, the deal is expected to close in early 2025.
The merger would create the largest U.S. credit card issuer by balances, which means it could face regulatory hurdles, according to analysts at Morningstar.
Among customers of the financial companies that qualified for the 2024 Most Trusted survey, 90.8% said trust was "very important" when it comes to their relationship with those companies.
With an overall trust rating of 76.4, credit cards came in fourth out of the eight categories for financial firms. They trailed wealth and fund companies as well as online brokers, but were ahead of life insurance firms, banks, as well as auto and home insurance companies.
Credit Card Rates At All-Time High
In February, the Consumer Financial Protection Bureau reported that interest rates charged by credit card companies had reached an all-time high.
But some consumers can look forward to rates easing. The Federal Reserve cut interest rates by 50 basis points on Wednesday, ending a rate tightening cycle that lasted four years. More rate cuts are expected later this year.
Read Our Category Stories On The 2024 Most Trusted Financial Companies In Investing, Insurance, Credit Cards And Banking.
In the past year's high-interest-rate environment, credit card companies that topped the list in IBD's trust survey had to work hard to earn their customers' trust in 2024.
USAA: Top Rates and Peace of Mind
Out of the eight attributes rated by customers, USAA scored particularly well on prices, ethics, and sensitivity to customer needs.
"We're there for our members when they need us most," said Shweta Jain, assistant vice president of Product Management, Credit Cards at USAA. "In the current environment, where borrowing can be costly, we continue to offer highly competitive rates on credit cards. When a natural disaster impacts a member or if a government shutdown threatens to affect pay, we're quick to offer payment relief and other programs to ensure their financial security."
USAA doesn't charge fees on cash advances sent to a USAA deposit account and only charges standard APR for these transactions.
Credit Card Rewards Pay Off
Rewards are another focal point in a high inflation environment.
"We've expanded our credit card lineup to give our members more choice, and power, in how they earn rewards from everyday spending," Jain said.
In total, USAA Federal Savings Bank returned $655 million to members in 2023 through credit card rewards.
USAA's travel and purchase protection, including fraud protection, is one of the many features leading credit card customers to give top marks to the financial institution.
Jain says that as a digital-first institution, USAA seeks to constantly improve its members' digital experience so that they can focus on what's important. "We also prioritize the protection of our members by providing them zero liability on fraud, giving them peace of mind," she said.
Amex Focuses On Exclusive Deals
American Express topped the trust rankings in terms of the credit card company's financial soundness, the quality of its products and services, and its customer service.
"We continually innovate and tailor our products, services and experiences to connect card members to what they love across travel, dining, retail, and entertainment," Howard Grosfield, president of U.S. consumer services at Amex, told IBD. "This membership model sets American Express apart. It's all backed by exceptional service that goes above and beyond to meet the high bar for service excellence our customers appreciate."
In February, Amex announced enhanced Delta SkyMiles American Express cards featuring new reward categories from everyday spending, dining at restaurants, ride-shares, rental cars, flights, and vacation stays.
New features come on top of existing benefits such as priority boarding, first checked bag free, and lounge access. In March, Amex debuted a partnership with point.me, a points and travel reward search platform, to help its card members search reward flight options.
In July, it opened a new Centurion Lounge at Ronald Reagan Washington National Airport. With nearly 12,000 square feet, the lounge features floor-to-ceiling windows offering views of the airfield and the Potomac River. Guests can enjoy menus from three award-winning chefs, as well as a specialty drink menu and wine list.
"The Centurion Lounge is one of our card members' favorite travel benefits, and the new location ... offers card members the premium amenities they love in an airport they frequently travel through," said Audrey Hendley, president of American Express Travel, in a statement.
