Thursday, 31 May 2012

Easy Store Credit Cards

If you have a favorite store you go to all the time, a retail credit card from that store might be good to get. Store credit cards often come with discounts to the stores and might even offer reward bonus points. Stores from J.C. Penney and Macy's to Walmart and Kmart offer easy retail credit deals. You can easily sign up online for retail credit cards.

Pros and Cons:

You can establish good credit by using a retail credit card and being responsible with it. The requirements to obtain a retail card aren't as stringent as those for major credit cards. If you make a big purchase with the retail card, the store might not charge you interest for the first six to 12 months of payments. There are also options for "bonus points," where you earn points for every dollar you spend.

However, interest rates are usually much higher than those of major credit cards and the perks don't always outweigh the finance charges. Pay off the balance every month.

Also, you can have too many. It's very tempting to keep signing up for new cards. Expert suggests you apply for only one or two retail credit cards.

  • Walmart's card can be used at all Walmart and Sam's Club stores. You can save 3 cents worth of gas per gallon in participating gas stations and there is no annual fee. You can decide the pay date and it is free to sign up a card for another family member. However, late fees are around $29 and interest rates range from 13.74 percent to 21.74 percent. To apply, check out
  • Target's retail card has a steep interest rate of 21 percent, so it's crucial to pay this bill off every month. With every purchase, there is a 1 percent donation to a school of your choice. With Target's Redcard, for every dollar you spend, you receive one point; once you reach 1,000 points, you automatically receive 10 percent off your next purchase. Research for more details.
  • J. C. Penney offers low monthly payments that can be paid online. There are also options for a Privilege card program. If you apply online, you can get 10 percent off your next purchase. The interest rate, however, is almost 22 percent.
Before you apply for a department store credit card, be sure to read the fine print and be sure you agree with all of the terms and conditions.These cards can be a wonderful way to spend or they could cause you alot of credit trouble.

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