Read this Tampa Bay Times article to discover some of the problems you can encounter with store credit cards. Discuss the cases from the article. People should always examine their credit card statements to make sure there aren't additional charges for things they didn't buy. Also, it is necessary to check out the interest rate and other fees charged. Examine the credit card statement. In the article, they mentioned a school vice principal from Chicago who discovered a $57 delinquency on their store credit card, which they had paid. The store had reported this delinquency to three credit bureaus and that resulted in a drop to her credit score. Therefore, she had to pay a higher interest rate to buy her home. One bad thing leads to another! How could she have prevented this from escalating? When you have a credit card, it is important to read your statements and check for anything suspicious immediately!
Credit Card Statement from Hands On Banking.
SS.8.FL.4.2 Identify a credit card purchase as a loan from the financial institution that issued the card. Explain that credit card interest rates tend to be higher than rates for other loans. In addition, financial institutions may charge significant fees related to a credit card and its use.
SS.912.FL.4.5 Explain that lenders make credit decisions based in part on consumer payment history. Credit bureaus record borrowers’ credit and payment histories and provide that information to lenders in credit reports.