NEW YORK—More than 67% of college undergraduate students have a credit card in their own name, and a little over 9% have access to a credit card as an authorized user, according to a mid-September survey from U.S. News.
Among the highlights of the study, according to US News & World Report:
- Plans to apply for a credit card. Around 31% of students say they plan to apply for a card in the next six months, and 22.7% say they'll apply for a card within the next year.
- Preferred student credit card features. When asked what features they'd want most in a student credit card, 31.7% point to no annual fee, 16.8% want a card that offers a bonus for timely payments, 12.8% favor a card that gives credit limit increases for responsible behavior and 11.3% want a sign-up bonus.
- Misconceptions about credit scores. More than 79% don't know that a credit score measures the risk that the cardholder will default on a loan. More than 23% think it represents the amount of debt someone has, 21.6% think it is the amount of financial resources someone has to pay back a loan and almost 12% think it measures how much a person knows about borrowing money.
- Understanding credit utilization ratio. Only 30.4% know that their credit utilization ratio is the amount of credit they're using compared with the amount they have available. Almost 16% think it refers to how frequently someone uses their credit card, and 13.6% believe the ratio measures how frequently someone uses their credit card compared with a debit card.
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