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With so many different types of credit cards available, it can be difficult to determine which card issuer offers the best deals. While there is no one-size-fits-all answer to the question of which credit card issuer is the best, card issuers do differ to a degree in terms of which types of credit cards and consumer groups they target. This can be useful to know when applying for a credit card to ensure you get the best fit for you. Here is a brief guide to the major credit card issuers and the differences between them.
Please note that the list of credit card issuers below does not include Visa and MasterCard. Visa and MasterCard don’t issue credit cards, rather they are payment processing companies, which license the Visa or MasterCard brand to banks and other financial institutions. The banks then issue their Visa or MasterCard credit cards in their name, with terms and conditions specified by the banks; Visa and MasterCard then process the charges made with the credit cards.
JP Morgan Chase. Chase credit cards are issued by JPMorgan Chase & Co, one of the largest card issuers worldwide. JPMorgan Chase & Co is a leading global financial services firm with operations in more than 50 countries, and its clients include some of most prominent corporations, governments, wealthy individuals and institutional investors worldwide. Chase credit cards are mostly consumer-oriented credit cards; the company in particular has a broad portfolio of rewards credit cards. More recently, Chase is attempting to position itself as a new leader in the cash back credit card market with its new Chase Freedom card, which offers 5 percent cash back in rotating categories.
Citigroup. Citi Cards are issued by Citigroup Inc., which like Chase is one of the world’s largest financial services companies with more 200 million customers worldwide. Citi offers a wide selection of consumer credit cards, including numerous different types of rewards credit cards. Together with Discover, Citi issues one of the widest selections of student credit cards. Of all the major banks, Citi was among the worst affected by the credit crisis of 2008, and many Citi cardholders saw their interest rates dramatically increased in the wake of the crisis.
Bank of America. By outstanding credit card balances, Bank of America is the world’s largest credit card issuer, although by number of cards in circulation, 80.2 million in 2008, it is only the third largest card issuer. That discrepancy may originate from the fact that Bank of America has emphasized business credit card offers with large credit lines in its credit card offerings. BofA offers an extensive line of business credit cards, including several airline rewards cards for businesses co-branded with Alaska Airlines, Asiana airlines, and Hawaiian Airlines. Of all the different card issuers, Bank of America has the most limited line-up of credit card offerings for consumers, with currently only three types of consumer-oriented credit cards—a cash rewards card, a miles rewards card, and a generic rewards credit card.
HSBC bank is one of the leading underwriters of store-branded retail credit cards, which it issues in collaboration with major retailers, such as GM and Saks Fifth Avenue. HSBC bank is also the underwriter of some of the more popular low interest credit cards, including the Orchard Bank line of Visa and MasterCard credit cards. HSBC positions itself as a company with a focus on green, environment-friendly policies. In 2008, HSBC bank had more than 38 million credit cards in circulation worldwide, according to the Nielson report.
Capital One bank. As the world’s fifth largest credit card issuer, Capital One caters to a broad audience, however, of all the major credit card issuers, Capital One holds one of the largest shares of the market for credit cards for people with less than excellent credit. Capital One also offers a wide selection of rewards credit cards with flexible terms, including its No Hassle and Venture lines of rewards credit cards.
American Express. American Express pioneered the early charge cards, the precursors of modern-day credit cards. Amex is one of only two credit card issuers not affiliated with Visa or Mastercard; unlike other credit card issuers (with the exception of Discover). Amex both issues credit cards and processes the transactions made with the cards. Amex tends to service a wealthier demographic, and in general, only people with excellent credit need apply. American Express offers a series of co-branded rewards credit cards, including some of the leading co-branded travel rewards credit cards, such as the Starwood Preferred Guest American Express Credit Card and the Delta SkyMiles Amex Card.
Discover Financial Services. Like AMEX, Discover cards are not affiliated with either Visa or Mastercard, rather, Discover Financial manages its own payments network. Rated number one in customer loyalty in 2007, Discover Card pioneered the cash back program and remains one of the leaders of cash back cards offering up to 5 percent cash back in rotating product categories.
