Understanding Credit: Key Findings and Tips for Responsible Credit Use

Title: Americans Rely on Credit for Necessities, Survey Finds

From credit cards to buy now, pay later services, Americans are increasingly turning to credit to cover their essential expenses, according to a recent survey conducted by NerdWallet and The Harris Poll. The survey of over 2,000 adults revealed key findings about the use of credit and its impact on personal finances.

Key Findings:
– Traditional and new credit types, such as credit cards and BNPL services, were widely used in the past year.
– Many Americans used credit cards for necessities like groceries and bills, either to accumulate rewards or because they lacked the funds to pay outright.
– A significant number of Americans carry a credit card balance from month to month, despite the misconception that it may be beneficial for their credit score.
– BNPL services are most common among younger generations and parents, with 8% of Americans using them for necessities in the past year.
– Delinquencies on credit accounts are on the rise, with over one-third of Americans being charged late fees in the past year.

The survey also highlighted the importance of managing credit wisely, especially in light of rising interest rates and debt levels. While access to credit can be a valuable tool for achieving financial goals, it is essential to use it responsibly to avoid falling into debt traps.

Overall, the survey found that while many Americans feel better about their ability to manage debt compared to a year ago, there is still a need for financial education and awareness about the potential pitfalls of relying too heavily on credit. By understanding the implications of their credit use and taking proactive steps to improve their financial health, individuals can navigate the complex world of credit more effectively.