Credit Card Debt Management

Are you the type of person who applies for a credit card if a store offers it? If so, you are like many others. Some people have more store credit cards in their wallet than they know what to do with. This is not right or wrong. Everybody has a unique situation. You need to know the pros and cons of store credit cards so you can decide how to move forward and what you should carry with you.

Most people apply for a store credit card because they get something in return. For instance, a store may offer to give you 15 percent off your bill if you apply for a store credit card on the spot. This is reason enough for most people to move forward.

Is there anything wrong with store credit cards? Most people agree that the biggest downside is the high interest rate that is attached to most of these cards. You should not be surprised if you learn that a store credit card has an interest rate of more than 15 percent. This is very common, even if you have a good credit score. Are you willing to pay this much in finance charges if you ever have to carry over a balance?

It is very easy to get your hands on three or more store credit cards. Most big stores in today’s world offer their own credit card. They have found this to be a great way to make even more money off of their regular shoppers.

Whether or not you apply for a store credit card the next time you have a chance is up to you. Some people will always do this, while others will stay away no matter what they are being offered. How do you feel about store credit cards? 

When it comes to store credit cards you may be tempted to move forward so you can buy everything you have ever wanted, plus much more. As you know, most large stores, such as Macys and many others, offer a store credit card. But before you decide for or against this you need to know what you are going to face in the future. When it comes down to it there are pros and cons of store credit cards, and if you are not careful you could make the wrong decision which will in turn affect you in more ways than one.

The main drawback of most store credit cards is the interest rate. If you are going to carry a store credit card you should follow this rule of thumb: never carry a balance from one month to the next. If you do you are probably going to be hit with a finance charge in the range of 15 to 20 percent. This means that the savings you accrued by using a store credit card are now being given right back.

Another drawback of store credit cards is that you may feel inclined to spend more than you can afford. Again, this puts you in a bad position because you are going to end up in financial trouble and more than likely a bill that you cannot pay off right away.

So what are the benefits? One of the best is that you may receive special offers from time to time if you are a card holder. And while this is a good thing it can turn bad in a hurry if you go overboard or don’t pay off your bill before finance charges add up.

If you are going to apply for a store credit card be sure to consider the pros and cons before filling out an application. 

Have you ever been asked by the cashier if you want to open a store credit card? Chances are that you have. And guess what? Many people answer yes to this question. While there is nothing wrong with opening a store credit card, you need to make sure that you are aware of the pros and cons before doing so. As you can imagine, despite what the cashier says, there are both pros and cons.

The main benefit of a store credit card is the perks that you will receive. For instance, you may receive 15 percent off of your first purchase if you open a credit card on the spot. If you have a large bill this can work out to quite a bit of savings.

Another benefit is that the store will send you coupons and discount codes on a regular basis. This is something that they do for customers with credit cards, but remember, they are doing this for a reason.

By sending coupons, the store knows that you will arrive and spend more money. In turn, if you do not pay off your credit card in full they will make money in interest.

Speaking of interest, this is one of the biggest downfalls of store credit cards. Generally speaking, a department store credit card will have an interest rate of 10 to 20 percent, and sometimes more. When you carry over a balance you will also carry over any interest that accumulates. And at 20 percent this can be a lot of money.

There are both pros and cons of store credit cards. Before you fill out an application and sign on the dotted line, make sure that you know what you are getting.