Pros And Cons Of Department Store Credit Cards

by Mack Bartlett

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.

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