When you go into a store, it’s not uncommon to get an offer for their store card. In fact, they make big money off of this method. But, before you grab one there are some things you should be aware of. In part one of “Cons to Getting Department Store Credit Cards”, you’ll see some of the disadvantages to applying for one of these cards.
Limited Use: With some store cards, you can use them just like a normal credit card, but with others you can only use it at that store.
High Interest rates: Store credit cards have much higher interest rates than regular credit cards. Some stores do allow a certain period with no interest rates, but if you miss a payment they may go back and apply those interest rates.
Credit Score Loss: Every time you apply for a card, your score gets knocked down by a few points. Plus, if your balance is too high it can hurt your score as well.
In part two, you’ll get to see a few other disadvantages to having a store card.