Things you should know Before Applying for Store Credit Card

When paying for your purchases at your favourite clothing store, the cashier would inquire whether you would be interested in saving 20 percent on your purchases made for today. Apparently, you would not like to miss such an opportunity. When you reply in confirmation, they would ask you to fill out an application form for their store credit card. You might wonder whether it would be a great idea. However, prior to you filling out that form, ensure you know the good and bad sides of availing a store credit card.

sale, shopping, payment, consumerism and people concept - close up of hands giving credit card at checkout in market or mall

Whether store card is made for you

It has always been considered better to start with bad news; especially when you contemplate, you are aware of all the good news anyway. Store credit cards have been known to encompass very high annual percentage rates, also known as APR. These might get as high as 18 or 19 percent, which has been significant, especially when you look at the APR that you have on your regular credit card. Having such a relatively higher interest rate could be detrimental provided you do not pay off your credit card balance every month. Therefore, if you lack discipline to do that, the store card has not been made for you.

Applying for Store Credit Card3

At times, a departmental store would have a store credit card made available, but might not be able to tell you that it does not encompass revolving credit. This would imply that you must pay the balance off every month anyway. In addition, it would also imply that you would not get credit for being a dependable account holder. In case, the card does not encompass revolving credit, the credit score would not be impacted either positively or negatively. Therefore, it would be pointless in availing the card. In case, you wish to enhance your credit score through opening a new line of credit at a store, ensure the store incorporates revolving credit system. IN addition, you should also ensure that you make timely payments.

Know how much you could spend

You might be looking forward to spending the money on your desired store. However, you should be completely clear about how much you would be allowed to spend. A majority of stores would offer significantly lower credit limits that could make your card useless for all purposes and intents. You are required to ensure that you have comprehensive knowledge on what you have been getting into prior to signing your name on the dotted line, as having several open lines of credit could significantly impact your credit score negatively.

purchase in a clothing store credit card

Benefits of score credit cards

Let us learn the Benefit of Store Credit Cards. The opening line of credit could assist you in building your credit score provided you have been held responsible for paying the balance every month. When you are careful about not going beyond your limits or purchasing more than you could actually pay in a month, you could considerably enhance your credit score.

Benefits of score credit cards

Knowing about the best deals before time could assist you in shopping more efficiently.

Author Bio Willie DeJarnette has been an ardent writer. His articles have made him famous all over the world for the relevant information it encompass for the readers. His articles and blogs have been widely popular with online readers that eventually earned him a great respect in the online realm.

 

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