Store credit cards can be a risky adventure, but if you use them intelligently, then they can be worthwhile in a few different manners. The biggest thing to be concerned about with store credit cards is the exorbitant interest rates that are charged, typically between 25-30%, which is substantially higher than normal credit cards.
When signing up for a store credit card, exercise caution, and know what to look for. Hidden fees can sometimes blindside you, so being a smart consumer is to your advantage. Only sign up for a store credit card from a reputable store, one that has been in business for a long time, and has a solid reputation. A quick call to the Better Busines Bureau might be a smart decision.
Obtaining a store credit card is a lot simpler than getting a credit card from a bank or other financial institution or lender. They specialize in giving credit cards to people with no credit, or very poor credit. This is in their best interest, since they will benefit from the little mistakes that a novice card holder will make on a regular basis.
You can drastically hurt your credit rating if you are not wise, so you must do your research and find out everything that you need to know about credit cards.
The best way to use a store credit card intelligently is to sign up for it when they are having a large promotional event, and you have a lot of big purchases to make. Due to the savings offered, normally a reduction of 10-20%, you can save yourself a lot of money, which is beneficial to your budget.
Once you have made these purchases, be certain to pay off the store credit card as quickly as possible, and then put it away. Do not close the account, as you can use this credit card as a mode of improving your credit score rating.
Many store credit cards offer rewards programs of some sort, and it is during these times of promotion that you can use your card intelligently. If you are going to somehow benefit monetarily from using your store credit card, it is in your best interest. Many store credit cards offer discounts to those customers that are card holders, and also to those who shop online. This is how to best use a store card intelligently.
As is the case with all credit cards, you must realize all of the associated pitfalls of credit cards. Figuring out how to pay them off can be troublesome to many people, and they are forced into debt consolidation. Learning how to pay off credit cards, and knowing some efficient tips that can help you to avoid credit card debt are very worthwhile.