It is almost inevitable that every time you reach the checkout, the teller is going to offer you some other discount percentage of some kind when you sign up for their store credit card. Surely this has happened to you on more than one occasion, and it’s not going to stop. Store credit cards are a great upsell for stores, and further allows you some advantages that you may not yet have thought of. While most shoppers are inclined to respond with an immediate and rather unconsidered “No, thank you”, opening and using a store credit card can be to your benefit, in more ways than one.
With most of the major retailers nowadays offering their customers the option for their own store credit card, you have to be aware of your individual shopping habits, as well as taking note of where you tend to shop most often. Each store offers differing rates and terms, and you should never be afraid to ask questions.
Applying for a credit card in the store takes only a matter of minutes, and does not require you to have a particularly perfect credit score, to begin with. It’s all part of the checkout process, smooth and swift, and generally accept credit score that would be denied by loans, mortgages, and other major credit cards. This being said, a store credit card, if used correctly and responsibly, can help to bolster your personal credit score, allowing the opportunity for better credit in the future. By simply making one purchase a month and paying it off in full, your overall credit score can be rebuilt. Why not have a look at some of the best store credit cards that are on offer from retailers today.
Benefits of a Store Credit Card
First and foremost, when you open a store credit card you are increasing your overall credit limit. Now, the way that credit scoring agencies rate you is according to the total percentage of credit that you are using on your card. Those who use more than 30% of their total credit are classified as “risky borrowers”. Making regular payments on your credit card is naturally going to increase your credit limit, and as such, is going to further reduce the percentage of credit you use overall. This, in turn, is going to positively affect your credit rating.
Well, it may be easy to get your hands on a store credit card, but do not be fooled into thinking that they are anything different. It is good to keep in mind that store and department store credit cards usually come with higher interest rates than other types of cards and something that you need to be aware of. The benefits are sometimes more than you can handle, and the thrill of spending all a little too much at times, but the rewards of a store credit card are far worth the effort to better your credit rating.