The APR On Your Retail Credit Card

The APR On Your Retail Credit Card

It is true that credit card offers all kinds of great bonuses and coupons at your favorite store. But have you ever wondered how high your retail credit interest rate really is?

What is the Average Retail Credit Card in APR? | The APR On Your Retail Credit Card

The Average Retail Credit Card APR is 25.64%, according to a new report. In addition, this rate is almost 5% higher than the average overall credit card APR of 20.82%, making the credit cards not much of a hassle.

Half of Americans interviewed in this study also reported that they had registered for a retail card without planning to. Another thing that must be considered. The report also found that many retail credit cards offer special financing, which is charged as interest-free financing for a certain period of time. However, if the balance is not paid within the specified period, you will be charged a retroactive interest rate at the purchase price.

The APR On Your Retail Credit Card

You may wonder, Is Retail Credit Card a good deal? | The APR On Your Retail Credit Card

It might be wise to avoid retail credit cards. Some exceptions: They come from stores where you shop frequently. They only charge a small amount and pay the balance every month to avoid high-interest rates.

While a credit card can be a great tool when used properly, retail cards may not be the best way. Low APR, no credit card fees are your best bet. If you want to receive tandem rewards with your credit card, consider credit card rewards, cash-back credit card, or travel credit card. All of these offer benefits similar to retail store credit cards, but with a lower risk.

Regardless of the type of credit card used, the most important thing is that you use it responsibly every month. This means you only collect a little balance and pay it off every month. Don’t use your credit card to close your budget gap and do not charge your card if you don’t have cash at that time.

When used properly, credit cards can help you build (or restore) loans, acquire credit history and even pay for products that traditionally require a credit card, For example, car rental or staying at a hotel. Credit cards can also protect you from fraud charges. Your credit card company will also help you resolve disputes about items that you have purchased that are damaged.

But with irresponsible use, credit cards can be an easy way to be indebted. According to the Federal Reserve Survey of Consumer Finances, the number of families using their credit card balances from 2013 to 2016 (the latest available data) increased from 38.1% to 43.9%. The study also found that credit card debt is the most common US family debt.

Other striking facts? US family debt has surpassed the record since April 2008, shortly before the real estate crisis.

Important tips to consider before getting a retail credit card

If you choose a retail credit card, make sure to read the fine print. Find out about special financing, promotional interest rates or fees.

Check the parameters of all special financial transactions and see if you need to make a repayment if you don’t pay all the balances in the promotion period.

Do you like to overspend on your credit card? Leave it at home before any outing.

The APR On Your Retail Credit Card

To build responsible credit, try using your credit card to pay one bill per month with direct debit. Then, a few days later, prepare an automatic transfer from your checking account to a credit card account.

Don’t register for a retail credit card if you already have credit card debt. Instead, work on settling the first debt repayment plan. You can also consider transferring your balance to a zero or low APR card.

Register a retail card only if it is in the store you shop infrequently. Don’t be tempted by a last minute offer to open a card and save 15% on your shopping. In most cases, 25% of card interest costs far more than 15% of savings.

Think of a reward or cash-back credit card and not a retail credit card.


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