Pros And Cons Of Department Store Credit Cards

Credit cards come in several different forms. There are charge cards, credit cards, rewards cards, and etc. One of the most used kinds of credit cards are department store credit cards. They make it easy and convenient to buy things on credit from your favorite clothing, jewelry, hardware stores, and from several other places which things you would otherwise not have been able to buy. Still, are you really getting a good deal by using a department store card, or would you be better off using a regular card? Here are a few advantages and disadvantages of buying things using department store credit cards.

PROS

Savings

Buying things from a department store using the card specifically designed to use at those particular stores can sometimes save you money. Depending on the department store, you may be able to get a certain percentage, or a certain amount of money back for a certain amount that you spend on a purchase. In this aspect, it is much like a rewards card, though it is only limited to purchases and savings within that particular department store.

Other rewards

Some department stores allow you to receive free amenities when you use your card to buy things online or from a magazine. Services such as shipping and handling and/or free gifts sometimes come with your purchases when you buy an item from a store with its credit card. This can be bought on the internet, over the phone, and through magazines, all being delivered by mail to your home.

CONS

High Credit limits

Having several department store cards with limits that you think are not very high can actually add up to be quite a bit. Having even small amounts on your department store credit limits becomes one large limit, which can make it difficult to get a major credit card. Having such a high credit limit because of your combined department store cards ties up your credit line and only allows you a small amount in which you can add another credit card.

High interest rates

Some department store cards have high interest rates that end up costing you more than you bargained for. Sometimes even the rewards do not make up for the money you spend on interest just to get these cards. Making late payments on these will also allow department stores to shoot your rates sky high, so you have to pay on time, or the card will be more of a burden than an advantage.

No rewards

Department store credit cards are more dangerous than they are useful when they do not give you something back for what you buy. Just being able to buy it on credit is not worth it, and can get you into financial trouble that you do not need. Get a card that allows you to save money on the products that you buy, and keep only those cards. Once you pay them off, don’t keep them. Having these cards will tie up your credit line and make other cards difficult to acquire.

Apply For Student Credit Cards

One of the best things that any student can do is to go out there and get a credit card. I think that many students fail to establish credit early and then by the time they are adults they have been spending only with a debit card and not able to buy a house or a car. I think that it is in your best interest to get a card going as soon as possible. If you are having issues then get a parent or an older sibling to cosign for you. This can be a great way to start off on a good note. If they are careful with their credit then they will teach you how to use the card correctly. Respect what they have done for you and use the card wisely.

Also you should open a checking and a savings account. This can help any credit company take a look at what you are doing with these accounts and how you spend money. This could be a great source to get a credit card from when the time comes. Also a lot of teens are offered store credit cards from clothing apparel chains like American Eagle, Buckle, Abercrombie, etc. These are also good ways to start establishing good credit. Now this could be scary for some of you because you spend money at places like these like a crazy person (this is specifically for the women). So I suggest you don’t spend anything on that card, which you can’t go without. Make sure that you have those funds in a checking account. Don’t start playing the game of making payments with a credit card and hoping money will fall from the sky.

Apply For Student Credit Cards Online

One of the easiest things you can do is get a credit card online at a valid banker. Be careful that some third parties are scams, but many are clean vendors for these major companies that allow for these big companies to spread their wealth on the Internet. Make sure that they are truly associated with a major credit company and then you could potentially find cheaper rates this way.

If you do apply for a credit card online, make sure to have an adult there the first time. This can be good because they will be able to help you know what to look for with a card. You can find cards without having to worry about annual fees, low APRs (not just initially) and unsecured cards that don’t require an initial deposit equaling your credit limit. Be smart with your choices and you will build a strong initial relationship with credit bureaus.