How To Guide For: Understanding Store Credit Cards -- A Look At The Pros And Cons
Store credit cards carry really high interest rates. The average store credit card interest rate is about 15 percent, but many retail credit cards charge interest rates of 20 percent or more. I know this sounds like a lot, because it really is. Store credit cards are similar to your regular credit cards and can be used in the same way. Store credit cards are great because you get discounts, points and many other benefits. The flip-side to this is having a store credit card means having to pay a high APR. So due to the high APR people with these store credit cards try to pay their balance in full every month. If you don't you'll be paying really high interest rates. Another con I noticed with store credit cards is that the limit given on the card is usually very low. Which if you think about it could be a good thing because it keeps your spending in check and once you reach the limit given you can't use the card anymore until you pay off the balance. But bad because now you're accruing a large balance and more than likely not paying it off at once, which leads to more and more interest. Having a store credit card can also affect your credit score. The reason store credit cards affect your credit score is because the credit score rating for store cards is usually low. These are just some of the pros and cons of having a store credit card. To learn more about store credit cards and the pros and cons -- click the pictures below to read the articles.