Marketing, Motherhood, and Mayhem

Skip the extra credit cards

June 22nd, 2010 by Deb McLean

I recently learned from CBS Money Watch that it doesn’t make sense to listen to those pesky individual store sales people that try to get you to sign up for their store’s credit cards. The average interest rate on a regular bank credit card is around 14%. But the average rate on a store credit card is typically 20% or higher. Rates will climb higher is you miss a payment. This interest rate can easily wipe out any discounts you may have earned initially if you don’t pay off your credit card balances in full each month.

In addition, for the sake of your Credit Score, the higher the credit line, the better. Otherwise, with the low limit these cards provide, you can more easily max out the card, which can negatively impact your credit score.

Having credit cards from individual stores will also cause you to be bombarded with more promotions, deals and sales. It’s just another way for them to market to their core consumer. All those tactics are just designed to get you to spend more and more often. Best to stay away from them!

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