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The U.S. Government Accountability Office recently released a study about credit cards with some interesting numbers:
<li> One in five (20%) of the credit card accounts managed by the top six credit card issuers had interest rates above 20%, with most of these being above a 30% APR.
<li> Over one in three (35%) of active U.S. credit card accounts managed by the top six credit card issuers were assessed late fees
<li> More than 1 in 10 (13%) of active U.S. credit card accounts managed by the top six credit card issuers were assessed over-limit fees last year.
<li> The disclosures on credit cards from the largest credit card issuers were often written above the 8th grade level which is where about half of U.S. adults read.
<li> Most credit card holders failed to understand when they would be charged for late payments
<li> Many credit card holders didn't understand what would cause their credit card issuer to raise their credit card interest rate.
While the report theorizes that the difficulty in the reading level for credit card disclosures may exist from the credit card issuers drafting their disclosures to avoid lawsuits, I'm sure that the credit card companies aren't crying that many people don't understand what they are getting into or how credit cards work.
<li> One in five (20%) of the credit card accounts managed by the top six credit card issuers had interest rates above 20%, with most of these being above a 30% APR.
<li> Over one in three (35%) of active U.S. credit card accounts managed by the top six credit card issuers were assessed late fees
<li> More than 1 in 10 (13%) of active U.S. credit card accounts managed by the top six credit card issuers were assessed over-limit fees last year.
<li> The disclosures on credit cards from the largest credit card issuers were often written above the 8th grade level which is where about half of U.S. adults read.
<li> Most credit card holders failed to understand when they would be charged for late payments
<li> Many credit card holders didn't understand what would cause their credit card issuer to raise their credit card interest rate.
While the report theorizes that the difficulty in the reading level for credit card disclosures may exist from the credit card issuers drafting their disclosures to avoid lawsuits, I'm sure that the credit card companies aren't crying that many people don't understand what they are getting into or how credit cards work.
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