Department Store Credit Cards

Offers for Department Store Credit Cards

Department store credit card offers are usually one-time offers. They may include an introductory interest rate or a percentage off of your first purchase. These can be great deals if you know how to manage your credit wisely. Before you sign on the dotted line, consider the terms that will be in effect after you make your purchase.

Introductory Interest Rates

A low interest rate is always a great way to get consumers to sign up for a credit card. However, read the contract carefully to determine what the interest rate will be after the introductory time period has lapsed. Some department store credit cards have interest rates higher than 20 percent. The lower the interest rate, the better the deal really is.

Finance Charges

Finance charges are based on the total amount due on your account. Savvy consumers always pay the amount of the finance charge and the minimum due, not just the minimum amount due. By doing this every month you will reduce your debt much quicker and increase your credit score.

Late Charges

Late charges can be very costly. Many credit card companies charge $25 or more if you do not pay your bill on time. Before you agree to a store credit card, find out if you can make payments in the store. Being able to pay in the store can help you avoid additional finance charges and late fees if you forget to drop your payment in the mail or to schedule an online bill payment.

Over Limit Fees

It is not uncommon for people to occasionally go over their credit limits, especially when shopping during the holidays or when renovating a home. What does your department store charge for over limit fees? Some retailers will charge you the minimum due, plus the amount you have gone over your credit limit and an additional over limit fee.

Credit Limit

When you open an account you will be given a credit limit based on your credit score. Will the credit limit you are given work to your benefit, or will it be just one more bill to pay each month? You can always decline to sign the credit card agreement if the credit limit you receive is too low to justify acquiring it.

Credit as a Financial Tool

Credit cards can be a great way to help you make ends meet during the month. If you find that you are opening a lot of credit card accounts to help make purchases you really don’t need, it is time re-evaluate your financial situation. Credit cards should be a financial tool that you use when you need a little credit for the current month or to spread out payments on a major purchase.

Acquiring too many credit cards can strain your budget and affect your credit score. Remember, it isn’t the number of open credit accounts you have, but the way in which you pay on those open accounts. In the long run, it is better to have fewer accounts that are always paid on time than many accounts that are managed poorly.