Survey — Many Millennials Don’t Understand How Credit Cards Work
- 48% carry card balances on which they pay hefty interest fees.
- 91% couldn't tell the surveyors what their credit card interest rate was.
- Over 70% didn't know what their over-balance fee was
- 25% of Millennials are carrying three or more credit cards
And, of course, we've saved the most mind-melting statistic for last:
- 6% of Millennials believed missing a credit card payment would HELP their credit score.
Millennials, here's the basic skinny on credit cards: Credit cards are NOT free money. They can be useful tools for recurring bill payments and can be used for convenience sake instead of money. But, and this is important so pay attention, using a credit card is still spending money. Money costs money. If you spend money and then don't pay it back right away (ie: in full, every business cycle) you're going to get hit with hefty (sometimes onerously heavy) interest fees. Interest fees are the price you pay for borrowing money. You want to keep your interest fees as close to zero as possible.