Store Credit Cards: Are they worth it?
By Nykkee
@Nykkee (2522)
Canada
April 16, 2008 6:43am CST
With everyone collecting up the credit these days almost every store out thereis offering it's own special credit card. Most of the time these card come with special benefits, like greater discounts on sales in that particular store or points that can be collected and redeem for cash or prizes. However the average store credit card has an interest rate of arounf 29%. That is pretty high. My husband and I recently decided to pick up a few of the store cards that don't have an annual fee, just to have, for emergencies and just to be able to collect the points and stuff. Do you think that these credit cards are worth haveing to be able to collect the points and get the deals or do you think that the high interest basically cancels out the benefits?
2 people like this
3 responses
@Ldyjarhead (10233)
• United States
16 Apr 08
They are worth it if you're not already overextended on credit cards and can pay the balance every month and not have to pay interest.
When Discover first started offering 'cash back' bonuses for using their card, I used it everywhere instead of my bank debit card. I would just write down the amount on a slip of paper that I kept with the card and then kept a tally of it like I would my checkbook, and I paid the balance every month without fail.
I paid no interest fees and I got cash back to boot. Worked for me for years!
1 person likes this
@Ldyjarhead (10233)
• United States
16 Apr 08
If you can't pay off this new card you're considering, then don't get it. There is no way the 'savings' will offset the interest rate you'll be paying longterm.
In fact, it is likely that you will be buying more when you see that you're getting a 'good deal' with the card, so it will put you further into debt instead of saving you anything!
1 person likes this
@Nykkee (2522)
• Canada
17 Apr 08
I dunno, we are still gonna get it, because we need to buy a woodsplitter this fall and we will be able to use it to buy that and that will allow us to make payments on it over the winter. Since that should be our only heating cost (we have wood from our property) I think that it's a good idea, even if we pay a bit of interest, because it's too much money to put out all at once, but it would cost us more in the long run to have to rent one each year.
@CatsandDogs (13963)
• United States
16 Apr 08
NO! They're so NOT worth it. They give the discounts only to make the money back with the high interest rate. The only way to win in this is by paying off the balance before you get your first statement and then calling the company to cancel the card out. That's the ONLY way to get ahead on these cards
1 person likes this
@Nykkee (2522)
• Canada
17 Apr 08
Yeah 28% interest is bad, but if you only use it for big purchases then you get 6 months with no interest to try to get it payed off. Plus some of them offer special interst rate for the first 6 months any stuff. So if you took a credit card with a special interestof 2% for 6 months and put the balance of another credit card on it for just that six months and then moved it back you would save some money.
@wondericequeen (7876)
• Hong Kong
16 Apr 08
Unless those are the stores that you visit regularly, then the discount offered might be worthed it. I tried not to get myself too many credit cards. I get the one with the best deal for me. Otherwise, I am afraid I would just end up in endless debt.
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