Almost half of millennials are not sure of what their credit card interest rate is according to a new survey reported on by CNBC.com. It also turns out that about a third of those surveyed believed that missing a payment would not make their credit score drop, about six percent thought it would make their score go up!
These are all troubling statistics because they mean that millennials are not being educated well enough on the potential pitfalls of having and using credit cards. They only have some vague sense of what those cards even are. Worse yet, they may be having their credit scores fall and not even be aware of it. It is definitely a wake-up call in terms of the need for more financial literacy.
It also turns out that a large percentage of millennial credit card holders do not realize that they can protest an interest rate hike on their credit card if that does happen to them. About two-thirds think that they just have to accept the higher rate.
Experts on the issue are encouraging millennials to not only learn more about their credit cards, but perhaps to put off getting those cards until at least after college. It is all too easy to rake up a lot of debt while in college on expenses that are not truly necessary. Worse yet, that interest will start compiling while you are still in college and perhaps without a job. That is not a situation that anyone should put themselves in.