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3 things to review before opting for a retail credit card

Created: On November 29, 2010 @ 8:41 pm In

The holiday season is in full swing, and with it comes an explosion of special offers targeted at consumers. Among the offers you may encounter are sales pitches to open store-branded credit cards at your favorite retailers.

If you’re considering springing for one of these cards, be sure to carefully review these three things:

  1. The terms. Always take time to evaluate credit card offers. While you may be enticed by getting 10 percent or even 20 percent off of purchases for opening a credit card on the spot, it’s important to review the terms and conditions of credit cards before signing up.
  2. Interest rates. You may not receive the promotional interest rate. Even if a salesperson quotes a particular interest rate, you may actually end up with a higher rate if your credit isn’t great. Many store cards have interest of 20 percent and up even for those with good credit, so it’s necessary to be aware of this possibility. A higher than expected interest rate could result in piling on more [1] credit card debt that expected. After all, if you open a card on the spot you might be tempted to charge more stuff at your favorite store before having a chance to review the terms and conditions. You might run up more credit card debt and have a tough time paying the bill when it arrives in the mail.
  3. Bonuses and perks. One of the advantages of signing up for a store credit card is that you may receive special offers and discounts from the retailer. Savvy consumers who pay the balance in full each month, and read the terms on how discounts apply can use these cards to their benefit.

If you already need [2] help with debt and are an impulsive spender, do yourself a favor and steer clear of store credit cards. Get [3] debt counseling from a reputable firm to work through your spending issues.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2010/11/29/3-things-to-review-before-opting-for-a-retail-credit-card/

URLs in this post:
[1] credit card debt: http://www.debthelp.com/blog/2010/11/15/falling-deliquencies-for-credit-card-debt-a-hopeful-sign/
[2] help with debt: http://www.debthelp.com/kc/
[3] debt counseling: http://www.debthelp.com/debt-consolidation/credit-counseling.html