5 Store Credit Card Warnings

Have you ever considered signing up for a store credit card when making a purchase at one of those major retailers?

You know what I’m talking about…when the salesperson hits you up for a new card to save 15% off of your purchase.

If you have ever felt the urge to do it…consider these 5 warnings first.

1. High interest warning.

According to CreditCards.com the average APR on retail cards has gone up 2 percentage points to 23.23%. That’s more than 8 points higher than average general purpose cards.

2. Minimum payment warning.

If you put just $1,000 on one of these cards and made the minimum payment, it would take 73 months to pay it off and cost over $840 in interest.

3. False discount warning.

Once interest is applied any bonus or discount will quickly be negated and end up costing you more in the long run.

4. Damaging your credit score warning.

Having your credit pulled and adding a new account will drop your score by a few points or more.

5. Temptation to spend warning.

With additional credit the potential to spend more becomes a reality.

So the next time you find yourself in a big box store, do your best to avoid opening or using a store credit card. You’ll avoid more stress about your finances, and increase your financial fitness.

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