Credit Cards and Financial Literacy Peekskill NY

By Eva Norlyk Herriott

As credit cards have become as ubiquitous as cell phones and video games, has our knowledge about how to best use credit cards kept pace? Do card holders know the basics about credit scores, credit reports, and how to avoid the most common pitfalls of credit cards? According to surveys, unfortunately the answer may be no. When it comes to financial literacy in general and credit card knowledge in particular, many Americans appear to fall short.

In the 2009 Consumer Financial Literacy Survey of 1000 adults commissioned by the National Foundation for Credit Counseling, more than 80% felt a need for greater financial knowledge. One in four graded themselves below average on their knowledge of personal finance, and more than 80% felt that they could benefit from getting advice on everyday financial questions from a professional.

Another major finding was that some parts of the population, particularly young adults and minorities, are further behind on basic financial literacy skills than others. In the areas of credit card usage, 25% of card holders admitted to not paying all their bills on time, however, among African-Americans that number was about 50%.

More than one third of the people surveyed didn’t know what their credit score was, and almost two thirds hadn’t ordered a copy of their credit report over the last year, even though it’s free. Again, this number was higher among minorities; almost three quarters of Hispanic Americans hadn’t pulled a copy of their credit report. ...

Click here to read the full credit card article from CreditCard Guide.