HOBOKEN, N.J.—A new study shows that nearly half of Millennials get one crucial detail wrong about credit cards.
A LendEdu survey of 500 respondents found that 45% of Millennials didn't know their credit card interest rate. About half said they carry a balance from month to month. Thirty-six percent said they had maxed out a credit card, 34% said they were not aware of how much the late fee would be if they missed a payment, and 17% said they don't know their current card limit, CNBC reported.
For the 29% of respondents who had missed a payment, 17% thought their credit score would remain unchanged afterwards and almost 6% believed a missed payment made their credit score go up, CNBC said.
“Also the majority of Millennial credit card holders are unaware of a rule that allows them to protest an interest rate hike from their credit card company," CNBC said in its analysis. “When asked, ‘If your credit card company increases your interest rate, can you do anything about it?’ 68% of respondents wrongly believed they would have to accept the increase.”