Almost every store you shop at
advertises a credit card, but is it a good idea to open an account at your
favorite retail location? As with any credit card, there are pros and cons when
considering opening a store credit card. The disadvantages of opening a store
credit card are that the rewards are not as great as regular credit cards,
store cards have higher APRs, and store cards can encourage you to spend
outside of your budget as they lure you with deals and coupons. Another
disadvantage to consider when opening a store credit card is that most store
cards have lower credit limits than regular credit cards, which will cause you
to use a higher percentage of your available credit. Using a high percentage of
your available credit increases your credit utilization, which can possibly
hurt your credit score. Although the disadvantages should be considered, there
are some benefits to opening a store card as well. The benefits of these cards
are that they can help build credit, store cardholders may receive special
perks (free gift wrapping, free shipping, etc.), and many store cards offer
cash back rewards. To get the best bang for your buck, experts recommend
opening retail credit cards only at stores that you shop at often to receive
the benefits advertised, and to try to pay the card’s balance in full every
month. For a full review of store credit cards, visit the Card
Watchdog website.
518 Arbor Hill Rd.
Kernersville, NC 27284
Ph: 336-996-3338
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