You’re Not Really Responsible With Your Credit Card

If you get to work on time, exercise regularly and eat some fruits and vegetables every day, you’re a responsible adult. Your financial responsibilities, such as your credit card, are another story.

According to an October survey by CompareCards, most people aren’t using their credit cards responsibly.

That may not come as a shock to anyone who has used a credit card and considers themselves responsible with it. And definitions of “responsible use” of credit cards vary.

But if you think that not paying off your credit card balance in full each month is responsible, think again. You’ll be paying interest on purchases you couldn’t afford in the first place.

+50% think OK to carry credit card balance

The survey found that although many consumers have multiple credit cards and carry balances, the majority assert that they use their credit cards responsibly.

“Even though more than half of respondents don’t fully pay off their credit cards on a monthly basis, they believe they are using them responsibly,” said Chris Mettler, founder of CompareCards, in a statement. “This is concerning, as it reveals that many consumers may not be aware of just how much their spending habits impact their credit and long-term debt.”

Other survey findings include:

• Almost a third (31%) of those surveyed have four or more credit cards, and an equal amount also use their credit cards very often for purchases.
• A quarter of participants have less than a total debt of $100 across all of their credit cards, while on the opposite side of the spectrum, 21% have $5,000 or more in total debt.
• Consumers vary in how often they fully pay their monthly credit card bill. 35% always pay in full, 19% sometimes pay in full, and 17% never pay in full.
  
• Despite the varying behaviors of the participating consumers, a majority (71%) believe they use their credit card(s) responsibly.
• Cash back rewards and low interest rates were the top two reasons consumers open a new credit card.

Pay in full or don’t buy

We’ll repeat a mantra we often consider when pulling out a credit card: If you can’t afford to pay for the item in full when the bill arrives, walk away.

You’re only setting yourself up for more debt and delaying payment on something you can’t afford. It can be a financial mistake you’ll regret.

Eat your financial veggies by paying your credit card balance in full each month.