Credit Cards - Yenra

Experian Consumer Direct today announced the results of a nationwide study on consumer credit card usage.

• U.S. consumers have an average of 3.2 credit cards
• Approximately 46 percent of the U.S. population have at least two credit cards and approximately 10 percent of the U.S. population have more than 10 credit cards
• More than 16 percent of the U.S. population use at least 50 percent of their available credit
• U.S. consumers who use at least 50 percent of their available credit carry an average of 4.6 credit cards
• The national average credit score for those with credit card utilization of at least 50 percent is 631 compared to the overall national average of 678

"Credit cards are a convenient way for consumers to purchase items now and pay them off over time," said Charles Chung, vice president of consulting and analytics for Experian. "However, if mismanaged, credit cards can get consumers into an unmanageable financial situation that can have a negative effect on their credit rating and as a result, future credit will come at a higher price or they may even be denied credit."

Tips for consumers on how to better manage their credit cards:

1. Make sure you have a plan to pay down your balance over a manageable period of time (four to six months) before putting significant new purchases on that same card. Keeping your credit card utilization below 50 percent will help your credit score.
2. Be aware of all fees and charges associated with your credit card. Make sure your monthly payment more than covers the fees and charges in order to lower your overall balance.
3. It's a common fallacy that closing credit cards will always help your credit rating. Focus more on the amount of available credit being utilized, making sure you are not over extending your debt beyond levels you can manage. Closing good accounts could actually hurt your credit rating.
4. Having available credit cards in your wallet can be a good way to build your credit history. They provide a safe and convenient means of paying for goods and services and can be useful in case of emergency. However, be mindful that even though you have available credit, it doesn't mean you have to use it all.
5. Due to credit cards being used at physical retail locations as well as for online shopping and phone purchases, there is more opportunity for your credit card number to be used fraudulently. Therefore, you should monitor your credit card usage, charges on your monthly statements, and your overall credit profile on a regular basis. This also helps you keep track of the amount of outstanding debt you have and helps you budget and manage your finances.

The Experian study was based on a nationwide sampling of three million consumer profiles. Information at the state level can be found on the Experian State of Credit page.

Experian delivers the credit products and services to help consumers better manage their financial lives. Its three-bureau report provides consumers instant access to their complete credit history from their Experian, Equifax and TransUnion files.