When you go into a store, it’s not uncommon to get an offer for their store card. In fact, they make big money off of this method. But, before you grab one there are some things you should be aware of. In part one of “Cons to Getting Department Store Credit Cards”, you’ll see some of the disadvantages to applying for one of these cards.

Limited Use:  With some store cards, you can use them just like a normal credit card, but with others you can only use it at that store.

High Interest rates: Store credit cards have much higher interest rates than regular credit cards. Some stores do allow a certain period with no interest rates, but if you miss a payment they may go back and apply those interest rates.

Credit Score Loss: Every time you apply for a card, your score gets knocked down by a few points. Plus, if your balance is too high it can hurt your score as well.

In part two, you’ll get to see a few other disadvantages to having a store card.

If you’ve ever gone into a department store before, more than likely you’ve been invited to apply for a credit card. Credit cards are very lucrative for retailers, which is why they offer them nearly every time you go. Here are some perks and pros to getting a store credit card:

• Zero Percent Financing: Some store credit cards offer zero percent financing options. This means you have anywhere from 12 to 24 months to pay off a large purchase with no additional interest fees.
• Shop Around: Some store credit cards allow you to shop at other places too. As long as you haven’t reached your limit, you can use the card anywhere where they accept Visa or MasterCard.
• Discounts: When you use store cards, you often get discounts whenever you use it for a purchase. This could come in really handy during certain times of the year.
• Credit Building: It’s also great to use for building or rebuilding credit and boosting your credit score.

Next time you’re offered a store credit card, consider these four nice perks.  

In Part 1 on how to be a successful credit card owner, we covered the importance of using credit cards like cash and making automatic payments. Now, let’s check out two more great ways to ensure that you are a successful credit card owner. These are not only just great tips; they are also obvious advantages to using credit cards wisely.

#1 – No need to worry about interest rates: One of the great things about credit cards is that if you pay off your balance in full each month, your interest rate won’t matter. This is perfect if you don’t have the best credit to begin with.

#2 –Credit card perks outweigh APR costs (usually) – Depending on the kind of card you have, the perks you receive for using your card responsibly throughout the year outweigh the annual rate cost.

Now that you know the additional benefits of owning a credit card, as well as the advantages to handling one successfully, you can apply for your next card wisely. Make sure that the benefits outweigh the cost.

When people get credit cards, they usually have the best intentions in mind. They plan on being responsible and trustworthy, but a few small missteps can lead them on a downhill spiral. In order to help you be a successful credit card owner, here are two tips that you can follow that will decrease your chances of defaulting on your payments.

#1 – Use Credit Cards Like Cash
Just because you have a credit card doesn’t mean you should use it. If you want something that you can’t buy with cash, don’t get it. That’s the simplest way not to get trapped in debt.

#2 – Use Auto Payments For Your Bill
So you don’t fall into default on your payments, it’s best you set your bill up on auto payments. This is a clever way to keep up with on time payments.

If you follow these tips, you’ll get to enjoy the benefits of good credit. Check out part 2 for more tips on how to be a successful credit card owner.