Store Credit Cards Aren’t Always the Best Choice
Why You Shouldn’t Always Turn to Store Credit Cards for Your Credit Needs
You’re standing in line at the checkout of your favorite retail store when the sales clerk kindly informs you that you could save 10 percent today by opening a new store credit card. Ten percent can add up to a lot of money, so you consider the deal. But should you really take it?
Do You Need the Card?
First things first – you need to ask yourself whether or not you really need the credit card you’re being asked to apply for. If you don’t need the card or worse yet, if the card’s going to end up getting you in trouble, don’t apply for it. Simply decline the offer. After all, having too many credit cards and too many credit inquiries can be just as detrimental to your credit report as not having any credit history at all.
Higher Interest Rates
If you tend the carry a balance on your credit cards, the 10 percent discount offered by the store for signing up for the credit card will negate itself with the higher interest rates you’re going to pay. Store credit cards typically have a higher interest rate than your Visa, MasterCard, American Express and Discover cards. If you’re going to end up throwing away money in interest, the store credit card really isn’t worth it in the long run, is it?