When paying for the purchases made at your preferred clothing store, the cashier will inquire whether you are interested in saving 10 percent on your purchases made for the day. Clearly, you will not like to miss such a chance. If your reply is affirmative, they will ask you to fill out an application form for their store credit card. You may wonder whether it will be a great idea or not. However, prior to you filling out that form, ensure you know the good and bad sides of availing a store credit card.
Why to choose store credit card
Starting with the bad news will be deemed better, especially when you contemplate, you are aware of all the good news. Store credit cards are known to have very high annual percentage rates, which are also known as APR. These may get as high as 18 or 19 percent, which is considerable, especially when you look at the APR that you have on your regular credit card. Having such, a relatively higher interest rate can be damaging provided you do not pay off your credit card balance every month. However, if you lack discipline to do that, the store card has not been ideal for you.
Revolving credit is imperative
At times, a departmental store will have a store credit card made available for you. However, they may not tell you that it does not encompass revolving credit. This will imply that you must pay the balance off every month no matter what. Furthermore, it will also imply that you will not get credit for being a dependable account holder. If the card does not encompass revolving credit, the credit score will not be impacted either positively or negatively. Therefore, it will be pointless to avail the card. If you wish to enhance your credit score through opening a new line of credit at a store, ensure the store encompasses revolving credit system. Moreover, you should also ensure that you make timely payments.
Know your limits
You may be looking forward to spend money on your preferred store. Nonetheless, you should be completely clear about how much you will be allowed to spend. A majority of stores will offer considerably lower credit limits that can make your card useless for all purposes and intents. You are required to make sure about having comprehensive knowledge on what you are getting into prior to signing your name on the dotted line. Having several open lines of credit can considerably affect your credit score negatively.
Benefits offered by score credit cards
Let us delve on the various benefits offered by score credit cards. The opening line of credit can assist you in building your credit score provided you take on the responsibility for paying the balance every month. When you are careful about not going beyond your limits or purchasing more than you can actually pay in a month, you can significantly enhance your credit score.
Knowing about the best deals on http://www.creditcardblogworld.com/store-credit-cards before time can assist you in shopping more efficiently.
Author Bio Willie DeJarnette is an enthusiastic writer. His articles have made him popular all over the world for the relevant information he offer for his readers. His articles and blogs are widely popular with online readers that eventually earned him great respect in the online realm.