IS a Store Credit Card WORTH USING?

Store credit is a card that gives an additional 10% discount on your purchase price any time it is used. This card can be gotten from chain stores ( such as  Target) and home improvement stores. Although, it is something issued by banks through the store.

How Does A Store Credit Cards Work?

The store credit card works like a traditional credit card but, it’s interest rates is higher compared to that of a traditional card. On this card, you are to make purchases that you can pay off over time and make the minimum payment monthly. When used to make purchases, many stores can give discounts and rewards or bonuses such as additional money for your next purchase.

Carefully read the credit card agreement to know which bank is in charge of your card, since most store credit cards available are issued by banks through the store, and how to make payment. Also when applying for a store credit card either online or in-store, do not forget to check the interest rate, a fee as well as punishment for violating the agreement.


IS a Store Credit Card WORTH USING?

Pros of Using Store Credit Cards?

With a store credit card, you can build your credit. So to increase your credit score, make sure you do your monthly payments in full and on time, and maintain a low balance.

Also, the standard interest rate on a store credit card is about 20%. But, the store will not give you a 10% discount, if they are to be at loss at the end of the day. If you are unable to make complete payment for purchases, the store will take the discount and some over the required time for payment.

Cons of Using Store Credit Cards.

One of the disadvantages of using this card is that, when things are on sale or you are given a discount, you tend to spend much putting every purchase on your credit card. That is you will no longer work with your budget thereby, spending unnecessarily.

Credit cards are tools, which when used wrongly can affect someone negatively. The reward is given to you and 10% saved is valueless compared to the interest you pay always if you don’t pay off quickly. So, if you notice that you can no longer pay off, stop using the card.

Notwithstanding, if you are drastically self-controlled and can pay off the card monthly, then there is no problem. If not do not go for a risk you cannot handle properly.

When to Stop Using Store Credit Cards?

It is advisable to continue paying in cash for all your purchases and avoid all the temptations and traps that come with store credit cards. So, if you have one already, stop using it, pay off your balance as fast as you can and be careful with the way you make purchases.

Making a debt payment plan or budget that will enable you to control your finances. If you are able to follow up the budget made and pay off the store credit in full monthly, then you will benefit from this card. But if you are unable to pay off and spend much then, stop using the card entirely.


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