Are Store Credit Cards a Good Idea?
“Save 15% and then another 20% on top of that…!”
As the holidays are upon us, many of us will be tempted to to open department store cards for those extra 15% saving.
Is it smart to open up a store card and take advantage of those prime savings?
We are here to tell you it’s a bad idea to open these cards.
For many reasons.
1- These department store cards do not help your credit, in fact they damage your credit.
2- What consumers don’t realize is, if you pay the card off in full the following month, that 15 percent that you saved initially turns into interest. So where were the savings?
3- These cards come with super, super high internet rates.
4- Banks like Comenity and do not follow the same terms and conditions like a regular credit card does. For example, all credit card companies allow for a 5 day grace period to make your payments after the due date (before assessing a late fee). Banks like Comenity do not extend that courtesy. If your monthly payment is not made on time. They charge you a 27.00 late fee the next business day.
This holiday season refrain from opening these kinds of accounts.
Season greetings from our team at Y2K Credit Solutions!