Category Credit Cards

Jul 12 2025

Your Credit History Explained

What’s my credit history?

Your credit history describes how you use money. It shows things like:

  • how many loans and credit cards you have
  • how much money you owe
  • how long you’ve had credit
  • if you pay your bills on time

The three nationwide credit bureaus — Equifax, Experian, and TransUnion — collect this information and put it in your credit report.

Read Checking Your Credit Report to learn how to order your report for free.

Why is my credit history important?

Your credit history tells businesses how you handle money and pay your bills. Your credit history can affect whether you get a job, can rent an apartment, or get a credit card or loan. It also affects how much you’ll have to pay in interest to borrow money.

Positive information helps your credit. Positive information includes things like paying your bills on time and having low credit card balances. Negative information, like paying bills late, hurts your credit.

What if I don’t have a credit history?

You might not have a credit history if:

  • you’ve never had a credit card
  • you’ve never gotten a loan from a bank or credit union

Without a credit history, it can be harder to get a job, an apartment, or even a credit card.

What’s a credit score?

A credit score is a number that’s based on your credit history. Each nationwide credit bureau creates a different score. Your credit score will usually range between 300 and 850.

It costs money to find out your credit score. Sometimes a company might say the score is free. But you might find that you signed up for a service that checks your credit for you. Those services charge you every month. Some credit card companies, such as Discover Card, provide free credit score with your monthly statement.  

Before you pay any money, ask yourself if you need to see your credit score. You might not since if you know your credit history is good, your score will be good.

For more information, go to:

Your Credit History Explained | consumer.gov

Teaching Suggestions

  • Ask students if they have a credit history.  If so, have they checked what information does it contain?
  • What actions can be taken to build your credit history?

Discussion Questions

  1. What is credit history?  What does if describe?
  2. Why is it important to know about your credit history?
  3. What might be the consequences if you don’t have a credit history?
  4. What can you do to build and maintain your credit rating?
May 17 2025

MAKING ENDS MEET

A study conducted by the Consumer Financial Protection Bureau (CFPB) reported that overall financial stability and well-being worsened from 2023 to 2024. The findings of the surveys included:

  • Fewer households can cover a month of expenses if they lose their main source of income. If the main source of income were lost, 42 percent of households could cover expenses for a month or less; 22 percent would be able to cover expenses for less than two weeks.
  • More households had difficulty paying bills or expenses. The share of families with these difficulties increased from 38 percent in 2023 to 43 percent in 2024.  38 percent of non-Hispanic white consumers in the study had difficulty paying bills or expenses, 63 percent of Black consumers in the study had difficulty, and 51 percent of Hispanic consumers in the study had difficulty.  
  • Financial well-being measured using the CFPB’s Financial Well-Being Scale declined.  Overall financial well-being fell to 48.7 in 2024 from 51.0 in 2023. The number of consumers with low or very low financial well-being increased from 16 to 22 percent.
  • Access to credit was also difficult for some. In 2024, 40 percent of consumers in the study applied for credit. Of those who applied, 39 percent were either denied credit or approved for a lower amount than requested. In addition, 27 percent decided not to apply because they expected to be turned down.
  • The use of credit card debt fell slightly. In 2024, 80 percent of consumers in the study had a credit card. Of those consumers, the share with revolving credit card debt decreased slightly from 53 percent in 2023 to 49 percent in 2024. Meanwhile, 23 percent of consumers with a credit card reported paying a late fee, unchanged since 2023.
  • Many respondents use multiple credit sources. About half of those in the study used a payday or pawn loan in the past year and had a credit card. About four-fifths of survey respondents had an auto title loan, buy-now-pay-later loan, or experienced an overdraft, and had a credit card.

The financial deterioration reported in this study was not the result of one specific cause. Factors that may have contributed to the situation include inflation, housing costs, high interest rates, and student loan payment resumption.

For additional information on making ends meet, see the following links.

Making Ends Meet Insights
Making Ends Meet Report
Well Being Scale

Teaching Suggestions

  • Have students interview another person about the actions taken to avoid financial difficulties.
  • Have students access the full research study to obtain additional findings and to suggest actions that might address the financial difficulties.

Discussion Questions 

  1. How might a person make use of family members, friends, and community resources when encountering financial difficulties?
  2. Describe actions a person might take to avoid the financial difficulties reported in this study.
Feb 15 2025

Plan ahead for the New Year

For many, December means spending lots of money on presents, food, travel, and other things to get you through the end of the year. And after we stretch our wallets, January’s often for taking stock and planning for the year to come.

If that’s true for you, here are some things to hopefully save you time as you transition from holiday festivities to financial goals in the New Year.

Are you:

Looking for more? The FTC’s consumer.gov site has tools to help you in the New Year and beyond. Get the basics on these and other topics like avoiding scams and identity theft at consumer.gov in English, Spanish, Chinese (Simplified), Korean, and Vietnamese. You’ll also find videos and free, one-page handouts to share in your community. 

For more information, click here.

Teaching Suggestions:

  • Ask students to get their free credit reports from Equifax, Experian, and TransUnion, and sign up for free credit monitoring with Credit Sesame or Credit Karma.
  • Ask students to list the main steps in creating a budget.  What are commonly recommended qualities of a successful budget?

Discussion Questions:

  1.  Why is it important to check your credit reports regularly?
  2.  What are the most frequent reasons for indebtedness?
  3.  What are common danger signals of potential debt problems?
Jul 20 2024

PRICE COMPLEXITY FOR FINANCIAL SERVICES

Many bank accounts, credit cards, mortgages, and auto loans have add-on fees to confuse consumers resulting in higher amounts paid for these services. A recent experiment conducted by the Consumer Financial Protection Bureau (CFPB) was designed to study these fees. The research results suggested that consumers pay more when prices are separated into multiple fees with a complex pricing structure.  

While the study may not exactly reflect real-world transactions, the CFPB study indicated that more complex pricing mostly led to more expensive outcomes. Key findings included: (1) higher total prices with sub-prices than one total price; and (2) difficulty in comparing prices among different financial-service providers.

The fees and charges that consumers may encounter with financial services include:

  • Credit cards are affected by interest rates, late fees, balance transfer fees, annual fees, cash advance fees, and foreign exchange fees. Cards with introductory 0% APR periods are usually followed by much higher APRs. Credit card reward programs often have varied methods for earning points and redemption rules.
  • Checking and savings accounts can have monthly maintenance fees, minimum balance fees, overdraft fees, and wire transfer fees; complex tiered interest rates based on account balances; and “free” checking accounts” may require minimum balances, recurring direct deposits, or other restrictions.
  • Mortgages are available with a wide range of interest rates, fees, and terms affected by loan type, credit score, down payment, and closing costs.
  • Auto loans will have varied interest rates based on a credit score, loan term, down payment, and vehicle type. Lenders may offer promotional rates or cash-back incentives, or add-on products such as extended warranties, gap insurance, and credit life insurance.

To guide wise use of financial services, be sure to: (1) ask for a total cost with clear information of what is included; (2) compare different financial-service providers, including banks, credit unions, and FinTech companies; (3)Bottom of Form search for no- or low-minimum balance checking accounts and no-fee credit cards; (4) use ATMs in your bank’s network; and (5) avoid overdraft charges by linking your checking account to savings.

For additional information on complexity of financial service fees, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others to learn about their experiences with high fees for various financial services.
  • Have students conduct online research to compare fees and restrictions for various financial services at banks, credit unions, and other financial-service providers.

Discussion Questions 

  1. When selecting a financial service, what factors would you consider when making your final choice?
  2. What actions can a person take to avoid high banking fees?
Apr 27 2024

CFPB Report Finds Many College-Sponsored Financial Products Charge High and Unusual Fees

The Consumer Financial Protection Bureau (CFPB) issued a report in December 2023 highlighting that many college-sponsored financial products have higher fees and worse terms and conditions compared to typical market products. The CFPB report identifies college-sponsored deposit accounts with fees above prevailing market rates, which institutions are required to consider under Department of Education rules designed to protect students’ interests.

Many colleges offer sponsored and co-branded financial products to students and alumni, such as deposit accounts, credit cards, and prepaid cards. Students may be likely to accept their school’s recommendation of a bank account or credit card when they arrive on campus, meaning that colleges and their financial institution partners may not face competitive pressure to lower fees or provide low-cost products. These arrangements can be lucrative for schools, as financial institutions pay tens of millions of dollars every year to colleges and universities, including flat-fee marketing deals and per-signup kickbacks.

In 2022, the CFPB’s College Banking and Credit Card Agreements report described the high fees charged on student banking products endorsed by colleges. The report made clear that financial institutions and colleges may be steering students into expensive financial products. Today’s report found that many colleges continue to employ marketing strategies that may mislead students into accepting products that may not be the best choice for them. Among the student risks identified in today’s report:

  • Colleges’ financial product partners may charge students high or atypical fees: Although most of the largest banks have moved away from charging overdraft and non-sufficient funds (NSF) fees in recent years, some of the sponsored deposit accounts in the report do charge students those fees. Thus, students who follow their school’s advice may be steered into accounts that cost them much more than what they would pay in the open market.
  • Fees paid by students often vary by institution type: The average fee burden varies by the type of institution. The report finds that accountholders at Historically Black Colleges and Universities (HBCUs), for-profit colleges, and Hispanic-servicing institutions (HSIs) all pay higher-than-average fees per account.
  • Students face unexpected fees at graduation: Some financial institutions impose additional fees when a student graduates or reaches a certain age, relying on “sunset” clauses in the products’ terms and conditions. Students who sign up for a product marketed as free may thus end up being charged monthly maintenance fees, or overdraft and NSF fees they did not anticipate.

The report notes that the CFPB will continue to examine these practices and identify possible violations of federal consumer financial protection laws.

For more information, click here.


Teaching Suggestions

  1. Ask students if they use college-sponsored and co-branded credit card (s).  If so, what has been their experience?
  2. Is it ethical for colleges and universities to promote college-sponsored financial products? Make a list of pros and cons.

Discussion Questions

  1. Why do many college-sponsored financial products have higher fees and worse terms and conditions compared to typical market products?
  2. Should colleges take a hard look at the fees and terms of the products they pitch to their students and alumni?  Why or why not?
Mar 2 2024

DANGERS OF DEBIT CARD USE

Debit cards do not provide the same protection as credit cards when lost or stolen. As a result, money experts recommend not using a debit card in these situations:

  • When buying airline tickets; if the airline goes out of business, you may have no recourse for a refund.
  • Non-bank ATMs are more likely to have skimmers that steal debit card information.
  • When making a gas station purchase a hold may be put on funds in your bank account, which could result in Bottom of Forman overdrawn balance when trying to make other purchases.
  • Use a credit card for online buying for stronger legal protection to dispute a charge.
  • In restaurants with high turnover, a dishonest employee may get access to your card number; again, a credit card provides more protection.
  • When buying appliances a credit card may give you an extra warranty, which would not be

available with a debit card.

With a debit card you can be responsible for up to $50 of unauthorized transactions if you report a lost or stolen card within two business days. Then, your liability can be as high as $500 for fraudulent charges if you don’t report the situation within 60 days after receiving your statement.  After that, you have the potential of unlimited losses for unauthorized use of your debit card.  In contrast, with a credit card, you are not responsible for unauthorized charges of more than $50.

Consider only using your debit card to withdraw cash to make purchases. Since not everyone will take a cash-only approach to control spending, there is another action to protect yourself. Use a second checking account for your debit card. Fund this second account only with money that you plan to use for debit card activity. Then, in case of a lost card or fraud, you would only lose the smaller amount kept in that second account with your main checking account not at risk. 

For additional information on debit cards, click here.

Teaching Suggestions

  • Have students survey several people to determine common uses of debit cards.
  • Have students create a podcast to warn others of the dangers associated with debit cards.  

Discussion Questions 

  1. Why should consumers become more aware of the potential dangers of debit cards?
  2. What actions do you take to protect your debit and credit cards?
Oct 9 2021

Money Habits of Women and Men

Based on recent research, findings comparing the financial habits of women and men include:

  • Overall, single men outspend women, which may be due to higher average earnings. Men spend more on food and transportation, while women have higher spending for clothing. Both groups have similar spending for entertainment.
  • Women are wiser shoppers, buying items on sale and using coupons more often than men.
  • For debt, including credit cards, student loans, auto loans, personal loans, home equity lines of credit, and mortgages, men have more debt than women.
  • For both groups, the main financial goals were saving for a vacation, paying off credit card debt, and improving their credit score.
  • As they near retirement, men had higher amounts in their retirement funds. However, women are more likely to participate in an employer retirement plan than men, and save a greater percentage from their paychecks.

For additional information on the money habits of women and men, go to:

Source #1

Source #2

Teaching Suggestions

  • Have students create a short survey to compare the spending, saving, and investing activities of women and men.
  • Have students create a visual proposal (poster or slide presentation) to suggest improved money management activities.

Discussion Questions 

  1. What factors might affect differences between the money management activities of women and men?
  2. Describe actions a person might take to improve money management activities. 
Aug 15 2020

Want a retail store credit card?

Retail store cards are credit cards that can be used only in a single store or at an affiliated group of stores. Like other credit cards, a store card will show as a line of credit on your credit report.

The advantage of these cards is that they tend to be easier to get, even if you have a poor or limited credit history. If you’re able to make consistent and on-time payments, a retail store card can be one way to help you build or improve your credit .

The disadvantage is that retail store cards may carry higher interest rates than traditional credit cards.  Also, if the card has a deferred-interest promotion, you could end up paying even more in interest if your balance isn’t fully paid off by the end of the promotional period.

Six rules for using your store credit card wisely 

  1. Watch your overall spending during the holidays
  2. Pay your bill on time
  3. Understand the differences between zero-interest and deferred-interest promotions
  4. Limit the number of cards you apply for
  5. Don’t get close to your credit limit
  6. Act fast if you can’t pay your bills

For more information, go to

https://www.consumerfinance.gov/about-us/blog/six-tips-when-offered-retail-store-credit-card/

Teaching Suggestions:

  • Ask students if they have any retail store credit cards. If so, what has been their experience?  Share the information with classmates.
  • Ask students to make a list of possible advantages or disadvantages of retail store credit cards. Share the list with the class.

Discussion Questions:

  1. If there is a deferred-interest promotion, why is it important to pay off deferred balance in full before the end of the promotion period?
  2. If you already have several other credit cards, will you be able to manage one more card?
  3. What is the difference between zero-interest and deferred-interest promotions?
Jul 18 2020

Financial Literacy for Children

A lifetime of skillful financial decisions starts with experiential learning at a young age. To increase financial literacy for the next generation, consider these actions:

  • Give children a payday. Instead of a weekly allowance with simply giving money, create a system of earning these funds. Connect their household chores to earned amounts with a weekly payday. This practice can teach a child that people are paid for work to earn money for their living expenses.
  • Create awareness of opportunity cost. Every financial decision has trade-offs. Once money is spent, that money is not available for other uses. Keeping money in a clear jar allows the young person to visually see what funds are available, and when the money is gone.
  • Allow children to experience borrowing. If a child wants to buy something but does not have the money, set up a signed loan agreement with repayment terms. Also create a plan for the amount owed to be taken from future household earnings. Have the young person physically pay the money to better understand how credit works.
  • Connect them in the budgeting process. Include children in the discussion of family finances and the household budget to help them understand where money is spent. Consider creating a chart with spending amounts, or use slips of paper representing money that are used to pay the bills each month.
  • Teach wants vs. needs. Shoes or a clothing item may be a need but not a high-fashion version. To cover the cost of the higher-priced item, young people should be required to earn the amount for the additional expense.
  • Use money games. These activities can help children understand earning, saving, wise spending and other basics of money management for a financially sound future.

For additional information on financial literacy for children, click here.

Teaching Suggestions

  • Have students conduct online research to locate other actions used by parents to teach their children smart spending and wise money management.
  • Have students talk to parents to obtain suggestions that might be used to teach wise money management to children.

 Discussion Questions 

  1. What are the financial, social, and relational benefits of children learning smart spending and wise money management early in life?
  2. Describe possible money management learning activities for children that involve creative use of technology.
Apr 4 2020

FINRA Investor Education Foundation Publishes “The State of U.S. Financial Capability”

Did you know that in 2018:

  • 19% of households spent more than their income?
  • 46% of individuals lacked an emergency fund?
  • 35% of credit card holders paid only the minimum on their credit cards?

In September 2019, the FINRA Foundation released data from its latest Financial Capability Study—one of the largest and most comprehensive financial capability studies in the United States. Among the findings, younger Americans, those with lower incomes, African-Americans and those without a college degree face the toughest financial struggles. More than 27,000 respondents participated in the nationwide study. Conducted every three years beginning in 2009, it measures key indicators of financial capability and evaluates how these indicators vary with underlying demographic, behavioral, attitudinal and financial literacy characteristics—both nationwide and state-by-state.

For more information, click here

Teaching Suggestions:

  • Ask students if they spend more than their income in a given year.
  • Ask students if they have a rainy day fund. If not, why?
  • Ask students if they pay in full when the credit card bill arrives. If not, why?

Discussion Questions

  1. What might be some reasons why almost one in five households spends more than their income?
  2. Why is it important to have a rainy day fund? Why almost half of Americans lack such a fund?
  3. Why is it vital to pay credit card bills in full? What are the costs of paying a minimum balance?