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DEPARTMENT STORE CREDIT CARDS: “RIP OFF” TO AVOID!

Most of us have been approached by salesperson at our favorite department store with the offer to sign up for a store credit card.

"Want To Save 10 Percent of Your Purchase Today?"

You probably heard that before, and the discounts are not the only things store will use to sign you up for one of their card. It can be a gift certificate, discounts, and combination of both. Well if you stop and think how do they make money if they offer such a great deal with these cards?

Here are three most important things you should know to avoid the traps of having a department store credit card:

1. Interest Rates Usually Way Over 20 Percent.

BankRate reports that the average percentage of a regular card is around 13 percent; you can easily find the better deal available by searching our site and browse through our categories. The department store will charge you more than 20 percent.  Now it's easy to understand why they will offer you a 10 percent discount with your FIRST purchase, so can collect 20-28 percent on all the other ones.

2. Most Likely You Won't Pay the Balance Off Quickly.

Whatever you think when you sign up, there are very good chances that you won't pay the balance off, when the bill arrives. And the stores know that, in fact how do you think they would make money offering the card to you?

3. Your Credit Score in Jeopardy.

Yes, when you get one of those cards it likely will have a low credit line. Meaning that you will use the larger percentage of your available credit, and that alone can reduce your credit score by more than 30-40 points. But, that's not the only danger...Pay Late one time, and you'll see rates on your other cards "skyrocket". Even if you get one of these store cards, pay it on time ALWAYS.

"No, thanks" will be the BEST answer to these offers.

Now you know that Department Store Credit Cards are a Rip Off, and you have to avoid them as much as possible. With credit cards becoming such an essential part of our lives, credit card companies have plenty to offer, and there is no need to get yourself into so much trouble with stores' credit cards. This site was design to help you to navigate in constantly changing credit card industry, our 5 star card rating system, will help you choose the best credit card for your need. Just compare offers from the leading banks and issuers and choose the best.  

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