Store credit cards have a bad reputation. But if you play your card right (HEY-O), opening a store credit card could actually work out in your favor.
Check it out.
The initial discount you get for opening a card is usually hard to beat. That fact alone can be enough to tempt most would-be cardholders. Even after that first big discount, many stores offer more deals – 10% off all purchases, rewards points, etc.
It’s also a bit easier to get a store card on limited credit history if you want to build your credit. The limits are typically pretty low, so a store card is a great way to get a $1,000-$2,000 line of credit and build up your credit history by making regular, on-time payments.
Now for the words of caution.
Store credit cards typically have very high interest rates, so leaving a balance on them can be financially draining. Another by-product of store credit cards is a pretty massive increase in junk mail. Junk snail mail is annoying enough, and you’ll still get that – but you’ll also get lots of junk e-mails, too, unless you’re careful.
And again, the credit limits aren’t high. If you want something with a high credit limit or numerous rewards programs that cover a bunch of different industries, a store card probably isn’t your best bet.
If you decide to keep your credit a bit more consolidated, consider getting a card with a rewards program. The DECU Platinum Visa card not only makes shopping, travel, and many other activities very easy on you and your budget, you get to choose your own reward program.
And it’s accepted outside of the mall. (Wink, Wink.)