New research from Zable reveals a significant knowledge gap that could leave UK consumers vulnerable to financial misconceptions when using credit cards.
Zable surveyed 2,000 UK adults, asking them to answer 15 true-or-false questions covering everyday topics such as interest charges, credit limits, and account history. Only 1% of respondents achieved a perfect score, while nearly 4 in 10 (39%) answered at least half of the questions incorrectly. On average, respondents answered just 8 out of 15 questions correctly.
A stark confidence-knowledge gap also emerged from the results. While 85% of Brits said they feel confident understanding how credit cards work, only 55% could demonstrate actual knowledge.
Managing everyday finances has become increasingly complex, with consumers navigating rising living costs and an expanding range of credit products. Although credit cards are among the UK’s most widely used financial tools, concepts such as interest rates, credit scores, and borrowing rules are not always straightforward.
The results reveal a clear knowledge gap between age groups. Just over a quarter (26%) of 18–24-year-olds answered at least half of the questions correctly, compared with 74% of those aged 55 and over.
Brits understand everyday basics but struggle with critical details
Many Brits demonstrated a solid understanding of basic credit concepts, scoring highest on questions about everyday credit card use. More than three quarters (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 what a credit limit means. However, this still leaves around a quarter of respondents with gaps in their knowledge.
Understanding dropped sharply when questions moved beyond everyday credit basics. Just 29% knew that income is not factored into the calculation of their credit score, while nearly a quarter (23%) incorrectly believed that using their full credit limit is one of the best ways to improve their credit score over time.
Those with poor credit history performed worst
The research shows that this knowledge shortfall is greatest among people who may already be struggling with credit. While 73% of adults who reported having a very good credit history passed the quiz, this fell to 56% among those who said they had a very poor credit history.
Among respondents who were unsure of their credit history, 27% answered every question incorrectly, highlighting a particularly significant gap in understanding among those who may be least familiar with their own financial position.
Confidence consistently outpaces knowledge
When comparing how confident people feel with what they actually know, confidence consistently outpaced understanding across every topic tested
- How credit cards work: 85.2% confident, compared with 54.8% answering correctly, a 30.4% gap
- APR: 68.1% confident, compared with 38.4% answering correctly, a 29.7% gap
- Credit scores: 78.2% confident, compared with 51.0% answering correctly, a 27.1% gap
- Interest charges: 81.0% confident, compared with 56.9% answering correctly, a 24.1% gap
- Minimum repayments: 85.5% confident, compared with 67.8% answering correctly, a 17.7% gap
- Credit utilisation: 58.7% confident, compared with 46.5% answering correctly, a 12.2% gap
- Credit limits: 84.7% confident, compared with 74.7% answering correctly, a 10.0% gap
Consumers feel most confident about concepts they encounter regularly, yet these are also areas where significant knowledge gaps remain. The disconnect is widest for general credit card mechanics and APR, where familiarity appears to mask substantial gaps in understanding.
Industry calls for better credit education
James Goforth, Product Manager at Zable, said: “When people feel embarrassed to talk about money, they’re often less likely to seek advice or support early, which can make financial challenges harder to manage. Improving credit education isn’t 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 useful 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 greater financial resilience.
The findings highlight the need for stronger credit card education across the UK to close the gap between perceived and actual understanding of key financial concepts.