Are there Any Good Reasons to Apply for a Store Credit Card?

Do you have a favorite department store? How about a furniture store? If so, you’re well aware that most of these establishments offer the opportunity to open a store credit card.

Generally speaking, this isn’t something you need. Most people are able to make the purchases they want, all without using a store credit card.

However, there are a few good reasons why you may want to think about this. Consider the following:

•    The opportunity to save big on your next purchase. For example, a store may offer 10 percent off your next purchase if you open a credit card. If you’re making a large purchase, such as a $5,000 couch, this can add up in a hurry.
•    You frequent the store often. If you’re a regular at the store, the perks associated with a credit card may make it worth your time.
•    Interest free financing. This is a benefit that many stores offer when you first open your credit card. For example, you won’t be charged interested for a period of 12 to 18 months. This gives you the chance to make a big purchase and pay it off over time, all without any fear of being hit with heavy finance charges.

While these benefits may have you excited about a store credit card, remember this: you must be responsible if you’re going to open this type of account. There are definite benefits, but if you carry a balance from month to month you’ll soon find yourself paying more in interest than you’ve saved. For everyday spending, consider a cash rewards credit card.

Now that you understand the reasons to apply for a store credit card, you can consider this the next chance you get.

Do you have a store credit card? Why did you apply for this? Was it a good decision? Share your thoughts in the comment section.