US News & World Report 2017 Financial Literacy Survey

us news & world report

Update: I updated the link to “The Best Credit Cards of 2017”. The old link lead to a dead end, sorry about that.

US News & World Report, a nationally recognized publisher of consumer advice and information, recently conducted a nationwide financial literacy survey. The results of this study revealed that many consumers fail to understand even the basics of credit card ownership – and the responsibilities that come with it. People would own credit cards that do not meet their needs and then run balances on those cards. Running a balance on a credit card is one of the worst mistakes a consumer can make and often leads to a never-ending cycle of overspending.

 

US News & World Report

US News subsequently created a guide to help consumers achieve a better understanding of credit cards, how to use them, and which ones to apply for. The credit card guide can be viewed here:

Being somewhat credit card literate is incredibly important when joining the points and miles game. Flying for free may be fun (and good for the wallet obviously), but the fun ends once you start spending beyond your means. Your personal income does not even matter. Credit card debt affects everyone equally. The higher the income, the higher the potential credit limit, the higher the potential debt. If you’re currently paying off a credit card, please also refer to my guide on how to become credit card debt free and what to do afterwards to remain credit card debt free.

The next step is deciding which type of rewards card suits your needs. A travel rewards card is great, but the nature of your travel should dictate the type of rewards card you apply for. A cash back rewards card may be a better option for some people, as those offer the greatest amount of flexibility. Another perk of the cash back earned is that the IRS has not (yet) created a method to tax it.

I think US News did an outstanding job in creating this guide and everyone – credit card savvy or not – can take something away from it.

Which ones of the “Best Credit Cards of 2017” do you carry in your wallet? Leave a comment below or on our social media pages.