Americans Don't Understand What's in Their Wallet
While many respondents pay off their entire credit card balance each month (almost 52 percent) and therefore pay little attention to APRs, not everyone is as diligent. Of the 58 percent of people who did not know the APRs of their credit cards, nearly 40 percent (38.06%) carried a credit card balance to the next month, incurring interest fees. This translates to a little over one-fifth of card-carrying Americans paying credit card interest without even knowing what the interest payments are.
"Credit cards can be a very convenient and beneficial form of payment when managed responsibly," stated
The survey also found 40 percent of Americans did not know their credit utilization ratio, or the amount of debt one owes in comparison to their maximum credit debt allowance. Without knowing your total credit limit, you cannot calculate your credit utilization.
A previous study done by
"Credit bands only represent a general view of where one stands financially and the bands can be pretty broad. Two individuals both with "very good" credit scores can still get very different rates and offers. A person with a 750 score is likely to get a much better deal than someone with a 720," said Lebda. "To get the best financial rates and offers, it's best to keep track of your credit score and know what could affect it. Having a solid grasp of your credit situation can save you significant money, but it's also just simply good practice to make sure your finances are correct and you're not victim to a reporting error or credit fraud."
There are a number of financial tools available online that can help track your credit score.
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Methodology
The 2015
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