It’s no longer a secret that Millenials aren’t the biggest fans of credit cards, fact confirmed by the way they’re using these tiny plastic pieces.
According to CNBC, citing a LendEdu survey, to which 500 respondents took part, almost 45 percent of Millennials aren’t aware of their credit-card interest rate, while half of them said they somehow manage to carry a balance from month to month, which is far from being recommended!
And this was just the beginning…
Moving on, 36 percent of those who were questioned responded that they had maxed out a credit card, while 34 percent admitted that they aren’t aware of how much the late fee is, in case of missing a payment. Finally, 17 percent had no idea about their current card limit.
The survey participants declared – 29 percent of them, to be more specific – that it happened to miss a payment, while 17 percent believed that despite this, their credit score will remain unchanged. As for the funny part of the survey, 6 percent of the participants said that a missed payment will actually make their credit score go up.
On the other side, when it comes to rewards cards, Millennials are among the first to be interested in them!
Surprisingly, Millennials aren’t aware of one rule (we can even call it a right!), which actually allows them to protest if their credit card company has way too big interest rates. Specifically, 68 percent of them believe that in such situation you can’t do anything but accept the increase.
They know what to do if something goes wrong! At least.
Despite all these surprising answers, the good part revealed by the survey is that the respondents knew what can happen if you misuse a credit card.
“Do not get a credit card while you’re in college,” says Carla Dearing, CEO of financial-advice website SUM180. “Wait until you graduate and have a job that lets you to pay off your credit cards in full every month.”
Dearing also recommends to carefully read the terms when opening a credit card and also be aware of the high interest rates, as most people, as revealed by the survey tend to ignore them.
