July 11, 2006

New research has shown the importance of word of mouth in the credit card market, as many cardholders pay a lot of attention to the experiences that their friends go through with providers.

Over a third of respondents to a Moneyfacts survey said that they have avoided a credit card provider in the past because their friend had a bad experience with that company.

Customer service is also important to many customers, as again over a third of people said they had moved credit card provider in the past as they were dissatisfied with the service they received.

This trend seemed to occur with a number of financial products, with over half of people saying they have moved a savings account owing to poor customer service and 40 per cent of respondents saying that they have avoided a loan provider on their friends' advice.

Emma Butler, editor of Moneyfacts, said: "These results highlight that it is not all about interest rate, and that customer service is still a high priority for consumers.

"Our finances are something we take very seriously and can potentially cause a lot of stress in our lives.  Thus, whichever channel we choose to manage our money from, when we want to talk to someone or need some assistance, we want to be treated fairly and receive a good service."