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Store Credit Cards

Target credit card. macys credit card, sears credit card

Using of store credit cards is a very controversial topic. On the one hand such cards offer you discount and additional benefits during your shopping on the other hand, they make you spend more and charge you higher rates. Let’s go through the pros and cons in more details.

Store credit cards are issued by huge malls, online stores or retailers. And offer extensive rewards. They usually belong to international payment systems such as Visa, Master Card or Discover. Most popular co-branded credit cards in US are issued by Macys, Amazon and Target. But today it looks like each retailer is tending to issue its own credit card. ”Apply for a credit card now and take an additional 15% discount on your purchase”- it sounds attractive but how much this additional discount really costs?

Store credit cards usually have high APR and sometimes they charge you annual fee. Interest rates vary from 25 to 30%, but you still have grace period, so you can pay no interest, if you don’t keep balance.

One more disadvantage is that you simply go on buying goods even if you don’t have money. We normally stop shopping when we realize that we don’t have any more cash. By giving you a credit card, stores make you spend more and more.

The best part is that you can really reduce your receipt by 10-15% by using store credit card. If you spend a huge amount of money in a mall, you enjoy savings and outstanding offers.

Accurate using of store credit cards is also a great way to build or rebuild your credit score. It’s much easier to get these cards even if your score is bad. But don’t forget that each application for another credit card will affect your credit score and can cost you about 10-30 points. So don’t apply for each card you are offered!

 

 

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