Retail credit cards are squeezing the financially vulnerable as their delinquency rate rises — how to avoid this mistake [MarketWatch]
Synchrony Financial (SYF)
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Source: MarketWatch
Retail credit cards are squeezing the financially vulnerable as their delinquency rate rises — how to avoid this mistake For the past two months, Becky Beach, an avid shopper with a low credit score, has found herself trapped in the “shop more, earn more points” game that retailers play. Beach, a 37-year-old stay-at-home mom, has been overdue on two of her store credit card payments — Loft and Kohl’s KSS, +1.88% . At first, she was surprised the stores even approved her for their credit cards. But then she started collecting points on every visit. “Loft offered me 30% off on my first purchase,” Beach said. “I keep spending to get free clothes and now I have $65 in points.” Beach, like many others, says she’s “really hooked” on getting free clothes. But she can no longer afford to pay the full balances. The high interest on these cards has piled up and she now owes more than $3,000 on the Loft store card alone. Beach is charged an annual percentage rate of 26.24% on the Loft card an
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