American Consumers in the Dark Regarding Finances
Published May 27th, 2008 in Credit News.
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.
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)
