Check what Credit card survey on College students reveals: SHOCKING! [Updated 2023]

Credit: HDFC bank

According to a survey by U.S. News & World Report, credit card debt has become very common among degree seekers, so student loans aren't the only type of debt that college students may have to deal with these days.

According to a survey conducted in September, more than 67% of undergraduate students have credit cards, which can be a wise decision because they can use them to establish credit history.

But according to the survey, 27% of college students with credit cards in their names reported having debts of more than $2,000, making up 46% of those with debt.

Additional poll findings

Plans to apply for a credit card: About 31% of students say they'll do so in the next six months, and 22.7% say they'll do so in the coming year.

Preferred student credit card features: When asked what features they'd want most in a student credit card, 31.7% point to no annual fee, 16.8% point to a card that offers a bonus for on-time payments, 12.8% point to a card that gives credit limit increases for responsible behaviour, and 11.3% point to a sign-up bonus.

Misconceptions about credit scores:  More than 79% of people are unaware that a credit score determines your risk of loan default. More than 23% believe it measures your debt load, 21.6% believe it measures your ability to repay a loan, and nearly 12% believe it gauges your familiarity with borrowing money.

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Students lack credit literacy, according to a survey

Numerous factors, including the rising cost of attending college and current economic factors like higher interest rates and inflation, can contribute to college credit card debt. The students' ignorance of credit is an additional factor.

For example, more than half of those who participated in the U.S. News survey claimed they were not aware that the longer they put off paying a bill, the more damage would be done to their credit. Furthermore, 20% of students said they thought having a credit card balance at the end of the billing cycle improved their credit score.

The survey also revealed that students' ignorance of the credit system as a whole was widespread. When asked what a credit score measures, only 20.8% of respondents said it is the likelihood that a borrower will not pay back a loan.

Credit: money.usnews.com