Three Tips for Receiving the Best Store Credit Cards
Most major retail stores offer their own credit cards. While many are similar in features, there are some that are better than others. While some people choose to obtain a card from every store that they shop in, more and more are instead being more particular about which cards they want in their wallets. Below are three tips for receiving the best store credit cards.
Read the Fine Print
Sometimes the issuers of a store credit card will make promises of “no payment for six months” or “no interest for a full year”. The problem is that if you do not read the fine print, you will not learn that once the period for the promised special terms is over, the interest rate will be nearly thirty percent.
Sometimes, such special deals are wonderful, but only if you fully understand all of the details. For example, sometimes if you make even one late payment, the special terms are off and you have to begin paying the full interest rate.
Other cards offer what seems like a good interest rate, but the fine print says that the rate can be raised at any time. Some consumers who have great credit are surprised to receive a notice in the mail informing them that their interest rate has skyrocketed. They wouldn’t be surprised, however, had they read the fine print.
As with any credit card company, the store wants you to apply. They know that if you get approved, there is a really good chance that you will use the card. They make the card sound as favorable as they can in the promotional materials. It’s up to you to learn the truth by reading all of the fine print.
Know Thyself
Sometimes which store credit card is the best deal will vary depending on the person. For example, a new homeowner who may need to replace several major appliances may do well by applying for a card to a store that specializes in such products.
When you are making a decision about applying for a store credit card, you need to consider more than just the terms of the card. You also need to look at your needs and be honest with yourself about how you will use the card.
In addition to knowing your needs, you also need to know a little something about your self control. If having a store credit card with an $8,000 limit is going to cause you to go on a shopping spree until every dime of your credit limit is used up, then this is not the best store credit card for you.
A Sound Decision
A sound decision about whether to apply for credit is never made based on the possibility of receiving a ten percent discount. In other words, do not apply for credit simply because you are tempted by such an offer as you checkout.
Applying for any credit should be a decision that you make after weighing all of the options and doing sufficient research about the credit product for which you are applying. When you make a snap decision at the register, you do not have time to either think about or do the needed research.
Choosing the best store credit card is certainly about the interest rate and other features of the card. Still, you must also consider other factors such as how you plan to use the card as well as well as your overall credit situation.
If the result of adding another card to your wallet is going to be more debt and a lower credit score, then there is no store credit card that is the best for you.
If you do have a need for a store credit card, be sure to learn all that you can about the card before applying. Also, if you have a good credit score, call and talk to customer service rather than applying online or through the mail. Ask if they will be willing to grant you a lower interest rate based on your excellent credit history.
Many financial experts say it is best to shun all store credit cards in favor of keeping just one or two major credit cards. If you plan to ignore this advice, do some research so you can know that you are getting the best possible deal.
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