Department Store Credit Cards – What You Need to Know

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We are getting to that time of year again when department store credit cards are offering left, right and center. During the Christmas holidays it seems that every store you visit will have a card just waiting to help with your purchases. Not saying that they are bad as they are very easy to get and very tempting when the hard cash is slowly coming your way; with no money to spare and no savings to fall back on.

The department stores sure no how to capture and dazzle you with some attractive offerings, but similarly to any other card, be sure to understand what you are getting into before you get one. These cards will serve their purpose on the market, but not in the wallet of persons who just love and enjoying spending on unnecessary items. It is very easy to get entangled into a debt burden when the holiday is over and believe it or not the interest rates for these cards can be pretty high.

Some persons might be saying at this point, that is not true, the department store credit cards offer free interest credit. Then if this is case, check your document and carefully go over that fine print before you commit to something that will come back to haunt you with bad credit in the new year.

The department store knows that people will carry on for months about not having any money during this time, but as soon as they still visit the stores they falls for the many temptations.

It is very hard for persons to resist purchasing, the decorations, gifts, food items, jewelry and many more items and the stores surely know how to go all out with their offerings. Many times you will be agonizing over an item that is way over your budget, you know what happens next, you will be given the lovely option of opening an account at the store and are eligible for discounts.

But as with everything, there are advantages and disadvantages for doing things, it is up to you to choose what is best for you.

Advantages

o These credit cards are much easier to get as the requirements are not strict as with the major cards.

o This is a very good way to establish good credit history as there are no limits.

o If you cannot to afford to purchase big items such as furniture and appliances, the store cards will allow you to do special financing for a period with no interest paid on the monthly installments.

o You can benefit from special store offerings when they have discount promotions for sale and events that are geared towards persons who have the store cards.

o Shoppers with department store credit cards will benefit from reward a point that is gained on every purchase.

Disadvantages

o When you sign up for this attractive credit card, one of the offerings might be getting an open line of credit, this can seriously affect your credit history in the future.

o The fees and interest that are charged on this credit card is extremely high when you compare to the other major credit cards.

o Damaging credit score if you are not discipline to make payments every month can easily lead to bankruptcy.

From this comparison, it would seem that the advantages for the department store credit cards outweigh the disadvantages. So it is up to you to decide if you can make your payments on time and not opening multiple lines of credit in order to enjoy these discounts and perks. Remember to read the fine prints; you do not want the appealing factor of this card to damage your credit history for major purchases like your home in the future. 

Source by Colin Scott

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