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Credit Card Customers In the Dark on Rates, Limits, Fees: Survey

by Peter Andrew
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.”

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