Capital One Canada Survey Asks Canadians: What is Your Personal Finance IQ?
Survey shows a need for a crash course on credit awareness
Toronto, ON – A new national survey shows that nearly six in 10 Canadians (57%) consider
themselves to be “highly” or “very knowledgeable” on personal finance issues. Yet, other
findings in the same survey, show that Canadians fall short on the ‘basics' of personal finance
-particularly when it comes to credit awareness and credit use. The survey, sponsored by Capital One, shows the necessity for a refresher course on the financial basics to ensure all Canadians are ‘money wise'.
“The results of this survey highlight the need for Canadians to be more mindful of their financial choices so that they understand how the decisions they make can affect their overall financial health,” said Diana Don, Director of Financial Education at Capital One.
The survey results reveal significant gaps between Canadians' perceptions about their financial habits and their actual practices.
Experts also agree that checking your credit report for errors is one of the best lines of defense consumers have to help protect themselves against credit card fraud and identity theft. Only 20 percent of people polled reported that they check their credit report the recommended once a year.
Are Canadians Aware of All of their Credit Options?
The survey also gauged perceptions about the use of various forms of credit and interest rates and found that while many Canadians know what they want, they may not always have the best deal.
“A difference of only a few percentage points can make a substantial difference in the overall cost of the credit you use,” Don noted. “It's important that Canadians realize that there are more competitive credit options available that offer lower rates, convenience, flexibility and greater purchasing power. For example, Capital One Canada offers a low-rate Platinum MasterCard that can offer consumers with established credit histories rates as low as 8 percent (prime plus 2%), which can result in a striking cost savings compared to a card at 18%.”
When asked about the credit tools they use regularly, nearly six out of ten (59%) Canadians agree that they would use a credit card if it had a lower interest rate, yet of those who have a line of credit, four in ten (40%) do so, primarily because they feel it offers the best interest rate.
Don added that regardless of the method of credit they use, Canadians should be sure to shop around to identify the best options to meet their financial needs.
For those who want to improve their financial IQ, Capital One Canada suggests starting with the
The Ipsos Reid survey was conducted from May 25 -29, 2006. For the survey, a nationally representative sample of 1,002 adult Canadians from the Ipsos-Reid Online Panel were interviewed Margin of error is ±3.02 percent at the 95% confidence level.
Contacts: Cristina Rück Pam Girardo, Capital One
Tel: (613) 565-4242 ext.222 Tel: (416) 228-5171
About Capital One
Located in Toronto, Ontario, Capital One has offered Canadian consumers a range of competitive MasterCard® credit cards since 1996, when the company first introduced the Platinum MasterCard® in Canada. Capital One Canada is a division of Capital One Bank, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF).