The survey asked consumers about their credit card habits and found that most people believe they are using credit responsibly. However, a majority of respondents were carrying balances on multiple credit cards. That suggests that many people could use a refresher on financial education—or maybe an initial course in responsible credit card usage. The head of the survey said the results indicated that many people don’t understand how their spending habits affect their bigger financial picture.
Key findings include data on number of credit cards, amount of debt
• One-third of those surveyed had four or more credit cards. The same amount said they use their credit cards “very often” to make purchases.
• One-quarter of respondents said they have less than $100 total debt across all their credit cards. But 21% have $5,000 or more in debt when they add up all their credit card balances.
• Only 35% of folks always pay their credit card bill in full. Nineteen percent sometimes pay the whole bill, and 17% never pay the full amount due.
• Even though so many people are carrying balances, 71% still believe they are using credit wisely.
• The top two most popular reasons for opening a new credit card account were to get cash back rewards and to get a lower interest rate.
Ways to be wise
For consumers who are open to learning new ways to be smart about using their credit cards, some tips to keep in mind are:
• Always pay your balance in full by the due date each month. Set up payment reminders and automatic payments. Try to always pay the entire amount due, so you don’t end up paying interest on your purchases.
• Only have the number of credit cards you really need. If you have multiple credit cards in order to take advantage of rewards programs, that’s great. Just make sure you’re not maxing them out and getting behind on your payments.
• Keep your credit card balance to 30% or less of your total available credit. Don’t charge your card all the way up to your credit ceiling. It’s bad for your credit score, and may make it hard to pay the whole balance off.
Read Also Related News
It’s an oft-quoted statistic that about half of all marriages end in divorce. But less talked about is the reason why many of these marriages fail. A new survey by credit bureau Experian sheds some light on the subject and reveals that...
Despite highly-publicized hacks that left people’s credit card information vulnerable to criminal use and fraudulent purchases, people still find credit cards to be the safest way to pay for purchases, online or off. Payment services...
If you’re looking to transfer a balance on your credit card, you might be interested to know that the Citi Simplicity card has just won an award for best balance transfer credit card. Factors that put it over the top for its...
I need a credit card with a 0% APR to consolidate several of my credit cards into one payment. Please advise what card I can apply.
There are special credit cards that allow consolidation of other cards’ debts - the balance transfer credit cards. These cards usually come with a 0% intro APR on balance transfer offer. The zero introductory period varies, but as a rule it is between six months and two years. So you can find a credit card with...
The easiest way to find out if you have credit accounts under your name is to request a copy of all your three credit reports: Experian, Equifax, and TransUnion. The reports contain information about active credit accounts, its issuers, and the information about credit accounts balances. If you want to protect yourself...
To set a PIN on your credit card, you should call the credit card issuer at the number on the back of your credit card and request your PIN. After that, the issuer will mail to you your PIN. In the meantime, if you need cash, you can go to a bank office and present your credit card and picture ID.
The overall process of getting a credit card can take up to 30 business days. To know the status of your credit card applications you should contact the credit card issuer. A quick online search for the bank or credit card issuer's name should turn up a customer service phone number or email address. Banks and credit card...