The Only Time a Store Credit Card Makes Sense

Many stores offer their own exclusive credit card. It is likely you have been presented with such an offer at the cash register. As tempting as it may be to sign on the dotted line, don’t do this just yet. Instead, ask for more information so you can review the offer before making a final decision.

The primary benefit of a store credit card is the savings you will receive. For example, you may hear the following from the cashier: sign up for a store credit card today and receive 15 percent off your next purchase. Sounds like a deal, right?

There is no denying the fact that this type of deal is appealing. This is particularly true around the holiday season when you know you will be spending money on gifts.

But here is the problem: store credit cards are notorious for having an extremely high interest rate. If you don’t pay off your balance in full, you may be surprised at how quickly it can spiral out of control.
For this reason, there is only one time when a store credit card makes sense: when you are 100 percent sure you will pay off the balance when it comes due.

If you have any doubt, think twice about making this decision. Even if you will save on your purchase, you are likely to lose all this money in the form of interest.

The holiday season is here. With this, you will be spending a lot of time at a variety of stores. If you have the desire to apply for a store credit card, it won’t be long before you have your chance to do so.

Will you sign up for an offer, use the card responsibly, and then pay off the balance when it comes due?