Given April is financial literacy month, KX News sat down with a credit card industry expert to dive into some common gaps in money knowledge.
A recent survey done by Credit Card Insider found more than 23% of respondents had to get a new card sometime between January 2020 and now due to stolen information, or other fraud.
Credit Card Insider Analyst Nathan Grant says 95% more people are shopping online in the last year. He says a good rule of thumb is to always use a credit card for that rather than a debit card because credit cards have a lot more federal protections behind them.
25% of people in the survey said they have made late payments on credit cards recently. Grant says it’s important to know even a single late payment can remain on your record for seven years, affecting your credit score and more.
“Things like mortgages or apartments, car loans, even cell phone contracts will look at your credit scores now sometimes,” he added.
“…and of course, interest rates, even on things like insurance and stuff, you want to always try to be getting the best rate for yourself.”
He adds late payments are usually not reported to credit bureaus for 30 days, so if you are running late due to serious financial strain, making a payment within the month, at least, is crucial.