NATIONAL SURVEY RESULTS SHOW MILLIONS OF AMERICANS DO NOT UNDERSTAND THEIR CREDIT CARD AGREEMENTS

Story Summary:

Have you ever heard of the "Schumer Box"? What about the term "Universal Default Clause"? If the answer is no, you're not alone. A recent survey from Capital One has found that many Americans do not understand these and other important details about the credit cards they carry.

Some surprising survey results include:

44% of respondents do not know the APR charged on their credit cards
20% do not know their credit limit
Almost one-third either don't read or don't understand the fine print contained in mailed credit offers; more than 20% have trouble locating relevant card agreement information, such as the APR
Nearly 70% do not understand the "universal default" clause - the clause present in most credit card agreements that causes an interest rate increase if a consumer is late on a payment to another creditor

The findings of the study suggest that problems often begin with credit offers consumers receive in the mail. Financial expert and best-selling author Lynnette Khalfani discusses the findings of the survey, tips consumers can use to get credit smart, and steps companies are taking to make credit card offers more transparent and easier to understand for consumers.