Credit Card Customers In the Dark on Rates, Limits, Fees: Survey
Despite persistent financial advice in the meda to understand credit card terms and conditions, a new study by Braun Research for financial author Lynnette Khalfani, found that almost half (44%) of credit card holders don’t know the APR, or annual interest rate, on their credit cards. Further, 40 percent did not bother comparison shopping competing credit card offers–they simply applied for credit card offers mailed to them. The survey also found that 20 percent were unaware of their credit limits, although this would mean that 80 percent were aware.
A vast majority of survey respondents thought that credit card terms and conditions should be spelled out more clearly, especially conditions that would lead to fees or a hike in interest rates. “Consumers are crying out for better disclosures in credit card solicitations,” said Khalfani. “Credit card offers with excessive legal terms, and tiny or hard-to-find fine print cause confusion and lead to poor financial decision-making,” said Khalfani. “Improved transparency will help Americans comparison shop and choose credit cards that are the best fit for their financial situation.”
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.
Published (Modified )