Are Store Cards Worth Having?

Store cards can be outrageous when it comes to interest rates. Many charge a whooping 25% interest or more. However, it is possible to use these to your advantage.

Sore cards work similarly to credit cards. The only difference is that they can only be used in a specific store or store chains. With store cards, you have the capability of buying or borrowing from these stores. Whatever store card you choose to have, understand its terms of use. Again, do not confuse store cards with credit cards that are store linked.

Store cards are the devil’s debt!

This is simply due to their exorbitant interest charges. On top of this, they are literally easy to obtain. They are;

Expensive- Close to two thirds of existing major store cards charge clients an interest of 25% and even more. This is an exorbitant fee compared to any competitive credit card.

They are usually missold- In most cases, these cards are given to clients by staff untrained on the same. In short, this staff has little knowledge on the shortcomings of owning a store credit card with an interest this high.

Youngsters are the target- Young people are in most cases debt illiterate, hence are targets for these stores. They end up spending blindly on these cards and sink themselves in deep debts.

The debt fact is concealed- In most cases, the card comes with an introductory discount, usually a 10%. This is what sells many to debt because it seems so attractive.

It benefits them only- You can only use these cards in their shops. You are actually a slave of that store plus the stiff interest charges!

As a rule, avoid borrowing on store cards. There are alternatives on the same like using the credit card with the best charges if you need to spend or borrow. In-case you have some debts on any store card, it is advisable to use the Balance Transfer option and move the debt to the best Balance Transfer Cards.

You Can Profit From Store Cards

There are times you can benefit from these cards and the bottom line is never to borrow using them. The reasons to use these cards are;

Making use of the discount offers- They usually come with these to lure you to sign up for a card. To make maximum use of this discount, wait till you need to buy an expensive item from the store.

Shop with friends- Friends and family surely need something at this discount rate. Buy these items for them and get the discounts, at their own time, they will return the favor.

Membership benefits- Store cards come with numerous benefits like card holder evenings among other offers. Make use of these.

Bargain-Haggling works in your favor especially in-front of sales assistants who have targets to meet. Use negotiation to see if you can get some discounts.

Use them when necessary- If it is late at night and you can not go out of the house, you can use these.

It is important to make considerations on what to use store credit cards on. In insurance for instance, understand that you get subjected to overpriced policies. Additionally, these cards can play a big role in hitting negatively your credit score.

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