National Survey Reveals Consumers Lack Basic Facts

Congress has declared April 2006 "Financial Literacy Month." An annual designation, the Congressional resolution recognizes the need to raise public awareness about the importance of financial education and the serious consequences that can result from a lack of understanding about personal finances. Financial Literacy Month offers Americans a chance to focus on the need for financial education and take a close look at their own financial well-being.

A newly released survey about credit card knowledge shows that Americans have a lot of improving to do. Findings reveal that most Americans don’t know important details about the cards they carry. Forty-four percent of respondents say they don’t know the APR charged on their cards and 20-percent don’t know what their credit limit is. The findings suggest problems often begin with credit offers received in the mail. Every credit card offer contains a Schumer Box, which contains key information about that offer including the interest rate on the card and applicable membership or penalty fees. Although the Schumer Box is a helpful consumer resource, the fine print is often small and can include language that is confusing for consumers.

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 like Capital One are taking to make credit card offers more transparent and easier to understand.