Managing everyday finances has become increasingly complex as consumers navigate rising living costs and an expanding range of credit products. While credit cards are among the UK’s most widely used financial tools, understanding interest rates, credit scores, and borrowing rules is not always straightforward.
New research from Zable, surveying 2,000 UK adults, reveals a significant knowledge gap that leaves consumers vulnerable to financial misconceptions. Respondents answered 15 true or false questions covering everyday topics such as interest charges, credit limits, and account history.
Major knowledge gaps revealed across generations
While 85% of Brits feel confident understanding how credit cards work, only 55% can demonstrate actual understanding. Nearly 4 in 10 respondents (39%) answered half or more of the questions incorrectly, with the average respondent scoring just 8 out of 15. Only 1% achieved a perfect score, highlighting widespread misconceptions around fundamental borrowing concepts, including APR, repayment fees, and credit score calculations.
The results also highlight a stark generational divide. Just over a quarter (26%) of 18–24-year-olds answered half or more questions correctly, compared with 74% of those aged 55 and over.
Surface level basics vs. critical details
Brits demonstrated a strong grasp of everyday credit basics, scoring highest on questions about routine card use.
Some 77% knew that missing a minimum payment could result in a late payment fee, while 75% understood the impact of missed payments on credit scores and knew what a credit limit means.
However, understanding dropped sharply when respondents were asked about more technical concepts. Only 29% understood that income is not factored into credit score calculations. A further 23% incorrectly believed that using their full credit limit is one of the best ways to improve their credit score over time.
Struggling borrowers face the hardest hit
The knowledge shortfall is greatest among those struggling with credit. While 73% of adults reporting a “great” credit history passed the quiz, the pass rate fell to 56% among those reporting a “very poor” credit history. Alarmingly, 27% of people who were unsure of their credit history scored zero, answering every question incorrectly.
Across every category tested, consumer confidence consistently outpaces actual knowledge
| Topic | Confident | Actually Correct | Gap |
| How credit cards work | 85.2% | 54.8% | 30.4% |
| APR | 68.1% | 38.4% | 29.7% |
| Credit scores | 78.2% | 51.0% | 27.1% |
| Interest charges | 81.0% | 56.9% | 24.1% |
| Minimum repayments | 85.5% | 67.8% | 17.7% |
| Credit utilisation | 58.7% | 46.5% | 12.2% |
| Credit limits | 84.7% | 74.7% | 10.0% |
Consumers feel most confident about concepts they encounter daily, yet these are the areas where actual knowledge falls short. The disconnect is widest around general credit card mechanics and APR, where familiarity masks significant gaps in understanding.
James Goforth, Product Manager at Zable, highlighted the importance of accessible financial education: “When people feel embarrassed to talk about money, they are often less likely to seek advice or support early, which can make financial challenges harder to manage. Improving credit education is not just about explaining how credit works, but also about giving people the confidence to ask questions, understand their options, and make informed decisions about borrowing.”
“For many Brits, using a credit card has become second nature, but understanding how it works is another matter. While credit cards can be a valuable financial tool for everyday spending, spreading costs, or managing emergencies, making informed decisions requires more than confidence alone. Clear, accessible guidance is essential to help consumers avoid costly mistakes and build stronger financial resilience.”