The more credit cards that you have, the more likely you are to become negligent in your remittance, and your credit score rating will be compromised. Try and limit your credit cards to just a couple that are essential so that you can have a clearer visual representation of your personal finances.
Store credit cards carry with them exorbitant interest rates, but they are simple to acquire. These are just a couple of the pros and cons of store credit cards.
Retail stores love to hook customers, and offering them a credit card is one way in which they are able to sustain them as regular customers. Before you sign up for a store credit card, you need to weigh all the factors, and then make an informed decision.
There are many pros and cons to store credit cards, and most of them are cons. Credit cards are designed to extract money from your pocket, and they use clever marketing strategies to lure us toward their den of lies. Store credit cards will lead you down a path of debt, stress, and frustration very quickly, and should therefore be avoided.
Credit card debt can be avoided, so long as you are a smart consumer, one that is able to resist the urge to make impulse purchases.
Many stores have infiltrated the world of credit card lending, and offer some rather tempting deals in order to summon you into their lair of debt. Many large retail chains offer credit cards, and often do so with very little hassle. This is a great way for someone to get a credit card that does not have any credit history.
This can be rather appealing to many people, either due to their poor credit, or for their lack of other credit. This can be seen as either a pro or a con, depending on which way you look at it. There are a lot of things to look at prior to signing up for every single store credit card that offers you a flashy deal. You need to know what to look for in a credit card, figuring out just how much a credit card really costs.
Retail stores typically will offer some great deals in store, but once you arrive at the checkout and the price is not what you had believed it to be, you will be informed that those prices reflect store membership in the form of a credit card. They conveniently have all of the necessary information available, and trick the unsuspecting dupe and naive rube.
Not all stores are sneaky like this, but many of the others will pressure you from within the store while you are shopping. This is a common problem with mall shopping.
PROS
*Loyalty gets rewarded. If you like to shop at a particular store, it will undoubtedly behoove you to invest in a credit card for that store, since you may reap many rewards, such as discounts on future purchases. Many stores have different prices for items that are purchased on credit.
*Simplicity to obtain. An awful lot of store credit cards are given out to plum near every single person that fills out an application. This truly helps out a certain element of shopper that needs to have access to a credit card in order to afford certain items that they are in need of at that particular time.
*Options. Store credit cards can give you certain options that may not have been otherwise available for you.
*You are able to get credit, which can help to raise your credit score rating.
CONS
*Most store brand credit cards are only good for usage at that particular location, which makes the card nearly useless to possess.
*High interest rates. The typical rates for store credit cards run the gamut from 19% to 29%, often fluctuating after a month or so. These exorbitantly high interest rates will leave you in a heap of debt rather quickly, and you will end up paying an awful lot more money in the long run for a product that you probably could have done without.
By the time you make your payment, you have often merely covered the interest, not touching the principal amount owing. You will need to find out the best ways to pay off credit card debt faster.
*Damaged credit score. These store credit cards can actually hinder your credit score, which may impact negatively upon you when it is time for a more serious loan, such as for a car or a mortgage. Store credit cards should be shredded immediately after you pay off what you bought. They should not linger in your wallet, lest you may use it again, which is precisely what the store is hoping for.
*Impulse purchases are made more readily on credit than with cash or debit card.
Credit cards are a risky business to begin with, and with all credit card bills, it is imperative that you pay the full amount on time, or else you will be subjected to outlandish interest charges that will saddle you with debt for years to come. This shroud of debt will haunt you ceaselessly, so make certain to pay off all bills immediately.
Store credit cards can be a worthwhile means of acquiring credit, and raising your credit rating, but if they are used in a reckless fashion, it can be tough to handle credit card debt.