LAS VEGAS—A new survey exposes a broad lack of understanding of essential credit principles among U.S. credit card users.
The Credit One Bank study reveals significant knowledge gaps in areas like credit utilization, payment habits, and the impact of closing unused accounts—missteps that can harm credit scores and emphasize the urgent need for trusted financial education.
"Financial setbacks can affect anyone but understanding how credit works is a game-changer when building or rebuilding your financial future," said Steve Min, chief credit officer at Credit One Bank. "Our recent survey results revealed that many Americans lack foundational knowledge about credit.”
Survey Findings
The survey, conducted in partnership with YouGov, highlighted critical gaps in credit knowledge among U.S. adults who own credit cards:
- 72% were unaware that a missed payment can stay on their credit report for up to seven years
- 65% were unaware that the maximum amount of available credit they should use at any given time is 30%
- 70% were unaware that they should keep their oldest credit card accounts open and use them at least once every few months
- 48% were unaware that creditors may close accounts due to inactivity, thus potentially reducing the length of their credit history
- 34% didn't understand the difference between a hard and soft credit inquiry