_______ of consumers with retail (store) charge card regret their decision to apply for this card. This may be explained by the fact that ___________ still have not paid back their charges from the 2018 holiday season. 

Questions:

• Have you (or someone you know) ever been asked when shopping at a store whether you wanted to open a store credit card? 
• How does the cashier try and encourage the shopper to sign up? 
• Why do you think so many cardholders regret their decision to apply for a store credit card? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Credit Card Insider):

These trends show that despite the relative popularity of retail store credit cards, they may not be the best option for shoppers. Over four out of five retail store cardholders surveyed said they applied for a card in-store. With the discounts, sales, and signup bonuses cited as reasons from survey takers, these incentives may look appealing in the short term.

However, if you can’t pay off your balance monthly, these store cards often charge interest at some of the highest APRs in the industry, canceling out any rewards value you earned quite quickly. There are benefits to store credit cards, but not if you plan to carry a balance month to month.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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