Pros and Cons of Store Credit Cards

Recently I read an interesting article on the National Post on Store Credit Cards. Titled Store Credit Cards Rarely A Good Idea, the article outlined some of the disadvantages and advantages of credit cards issued by various stories.

Some Disadvantages:

  • High interest rates. Up to 29.9%.
  • Limited Choices

Some Advantages:

  • The method of interest charging when you do not pay the whole amount. A traditional credit card company would charge the full credit until you pay up in full. Most stores, on the other hand, progressively reduce your interest as your total credit decreases.
  • Many store credit cards do not have an annual fee.
  • Because they are easier to get, they could be used to build up a credit history.

Some experts would say that use store credit cards when the store is offering discounts.

But having too many cards can also make a dent on your credit rating.

  • Do Low Credit Card Interest Rates Really Matter? (applyforacreditcard.com)
  • More than 8 million drop out of credit card use (sfgate.com)
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