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Saturday, 26 May 2012

Store Credit Cards

What You Need To Know About Store Credit Cards

Most people may have forgotten how long ago credit cards were introduced. Issued by big companies and backed by some of the biggest banks, credit cards since then have become an indispensable part of our everyday lives. Later, stores and other establishments expanded the scope of their businesses by issuing their own credit cards.

For the consumer, the primary question is how should one find good store credit cards to own. This is advantageous for the first timers who want to avail the attractive perks and services offered by these cards. Nowadays, store issued credit cards have their own attractive benefits and advantages. If you have a steady reliable job, a phone to your name, and have not reneged on your payments - then, it is easy for you to get one.

Benefits

The biggest benefit of getting this card is the chance to rebuild your credit. (Major card companies are usually hesitant to extend credit to truant card holders.) Having a store card or a gas card might just be your only options.

With good store credit cards, you can get financing without interest. Sometimes, this privilege is given over and above your usual customer discounts. The amount is significant if you have big purchases or your total purchase is large enough. Fortunately, these cards are also offered by some of the big familiar stores (Sears, Macy's, JCPenney, and Bloomingdales among them).

Advantages

Store-issued cards sometimes carry with them many privileges like continuing discounts and exclusive shopping days mostly offered to frequent shoppers. There are also special coupons and other privileges carried within their exclusive newsletters.

Some stores issue co-branded cards. These are cards that also carry the logo of familiar card companies like Visa, MasterCard, American Express and Discover among others. These co-branded cards can be used in other stores that accept them. These cards also have their own rewards programs. Some of these perks include earning points for airfares and store items, including cash backs.

Precautions

As your topmost precaution, always keep a mindset that owning such cards does not mean a new source of future loans. Both good store credit cards and those issued by the big card companies simply operate as a convenient means of not having to carry cash. Such cards from department stores or gas stations do help establish good credit. The only caveat is that avoid having more than two of them for each at any one time. You can only handle enough number of cards that your income and paying capacity can match.

More alerts

These cards are trickier to handle than other regular cards. As store customers, owners of these cards are often informed first on big sales and other store promotions. You could rack up enough purchases before you realize it. Most of these cards also have ongoing point reward systems which can entice card holders to spend more just to accumulate points. This does not include other purchase-enticing store services like layaway plans, phone orders, discounts on special deliveries and others.

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