Sometimes, I get a bit tired of hearing the bad rap that department store credit cards get. Now, I will grant you that these cards do have much higher interest rates than what anybody would consider ideal. In addition, these cards don’t have the same versatility as major credit cards because they can only be used in that particular store. Nonetheless, if used properly, store credit cards don’t deserve the bad reputation that they’ve earned in the past.
In many cases, having a store credit card allows you to receive special deals and rebates that non-cardholders can’t get. Recently, I went shopping at a clothing store and saved over $100 on my purchases simply because I used the store’s card. When I initially signed up for the card, I also received over $100 in discounts for the purchases I was making at that time.
Did I fall prey to that “receive a discount today if you apply for a card” scam? Absolutely not! I was making the purchases anyway and, when the bill arrived, I paid it off in full. I was able to take advantage of the healthy discount that the store was offering without having to finance it with a high interest rate. In fact, when I discussed the offer with the sales associate, she actually encouraged me to pay the bill off before I even left the store to avoid those potential finance charges entirely. So I enjoyed a healthy 10% discount on items that I was going to purchase anyway, and didn’t pay a single penny in finance charges.
The bottom line is that you have to be smart when you use a store credit card. If you plan on carrying a balance, which you should always avoid doing anyway, you certainly don’t want to use a store card. If you’re going to pay off the balance at the end of the month, on the other hand, using a store credit card can be a simple way to get a quick and dirty discount on your purchases.
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