43 million Americans wrongly believe that carrying a
balance on their credit cards will help improve their
credit scores, a report released Monday shows.
report by CreditCards.com found that 22 percent of U.S.
consumers made this mistake, which forces cardholders to
pay more in interest, often at high rates.
painful to know that so many millions of Americans are
essentially attempting to pay their card issuers to
improve their credit scores," said CreditCards.com
senior industry analyst, Matt Schulz in a news release
about the study. "The fact of the matter is that
carrying a balance will never improve your credit. With
interest rates at an all-time high, cardholders should
aim to pay off their bills in full every month, and,
more importantly, pay on time."
(ages 18-37) were the group most likely to do this at 28
percent, followed by Generation X members (ages 38-53)
at 25 percent. About 16 percent of Baby Boomers and the
elderly fell victim to this practice, the report said.
report also found that 42 percent of people admitted to
paying late, often because they forgot or were
35 percent said they were late because they didnít
have the money to pay the bill. Millennials, at 53
percent, especially those ages 18-27 at 61 percent, were
the most likely to miss payments because of a lack of
money, according to the study.
itís not a good idea to simply put the card in a
drawer and not use it, credit experts say. To establish
and build credit, itís important to buy things with a
card, then pay off the balance each month.
online study was done by GfK Custom Research North
America. The sample consists of 1,000 completed
interviews, with a margin of error of 3 percent.