American Consumers in the Dark Regarding Finances
A new survey released by The Center for Economic and Entrepreneurial Literacy (CEEL) found that most Americans are in the dark when it comes to personal finance.
The study found that a whopping 97 percent of respondents could not identify the percentage of fees tied to a $20 ATM withdrawal, likely because they view it in dollars rather than percentages.
More than 90 percent either didn’t know how much the fee was or thought it was lower than the actual cost.
In reality, if you pull money out of a bank that you’re not affiliated with, you could be paying $5.50 for that $20, which is a startling 27.50 percent.
Perhaps the most troubling finding in the survey was the fact that almost 70 percent of respondents didn’t identify Fico score as the most important factor in obtaining mortgage financing.
FYI, you can get a free credit report without credit card so you know where you stand, but the reports don’t provide a free credit score. You’ll need to look through it for any signs of problems like missed payments and high balances to determine if you need to look up your score as well.
It’s typical for first-time homebuyers to focus on things like down payment while forgetting about their credit score, which is actually more of a roadblock than anything else.
Many banks and lenders can work with small down payments, but if you’ve got poor credit, you’ll end up with a higher interest rate or no financing altogether.
These numbers just reinforce the fact that most consumers get taken for a ride when it comes to banking or home loan financing, based primarily on a lack of education.
(photo: stevelyon)
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- Nearly Half of Consumers Don’t Know Their Credit Score
- One in Four College Students Graduates with $5,000 in Credit Card Debt
- Consumers Pay Credit Card Before Mortgage
- Loads of Brits Paying Mortgage with Credit Cards
Posted Under: Credit News