Store Credit Cards

Store credit cards are credit cards that you receive from a store or other retailer.  Most department stores have some sort of store credit cards that they offer their customers.  Gas stations, home improvement stores and national retail chains also usually have a variety of credit that they offer.  Sometimes you can use these cards anywhere like a regular credit card, and other times you can only use them at the store that issues them.  These cards can be a benefit to you if you learn how to use them properly.

One of the best things about store credit cards is that they usually come with perks.  For instance, many retailers will offer special discount days when cardholders can receive an added discount on their purchases.  Even if you pay off the balance before you have earned any interest on it, you still receive the discount just because you are a cardholder.  Also, most retailers who have cards will offer a sign up discount to encourage customers to sign up for a credit card.  This discount can be used to your advantage, however, if you are making a major purchase.  For example, if you do all of your holiday shopping at one particular retailer and sign up for a credit card when you are done, you could receive 10% to 20% off of this major purchase.

About Store Credit Cards

Some store credit cards, particularly gas station cards, offer a points reward program.  This allows you to earn points for every dollar you spend on the card.  These points can be redeemed for in-store credit or other merchandise.  Some points can even be redeemed for free travel certificates.  This means that you are actually earning money when you spend money.  Often these cards can be used in other locations, and you may be able to earn double or triple points when you use the card at the store that issued it.  These points add up quickly and can earn you substantial rewards if you use the card for your day-to-day purchases.   If you have one of these cards, consider using it for your normal monthly purchases and then paying off the balance each month.  You will be earning points and free items, but you will not be paying any more for your items than you normally would have paid.

Sometimes stores that sell large items, like appliances or home improvement products, will offer 0% introductory APR credit cards for large purchases.  This is a great way to finance something that you need to purchase for your home, but don’t quite have enough money for.  If, for example, your dryer suddenly stops working, you will have to replace it right away.  Using a 0% APR credit card with your local appliance store is a great way to get your clothes dried while not paying high interest for your new dryer.

When applying for store credit cards, be sure to read all of the fine print on the card.  Sometimes these cards have high interest rates.  This is not necessarily a problem if you use the card wisely, but you should be aware of the interest rate before you get the card.  Also, make sure you know what the grace period is.  In other words, learn how long you have after making a purchase before that purchase starts earning you interest.  This is the time frame in which you want to pay off that balance if you can. 

Remember, store credit cards can be very helpful, particularly if they have rewards and incentives attached to them.  However, like any type of credit card, you need to know the terms and conditions before signing an agreement.  If they are acceptable and you like the rewards program, go ahead and sign up and start saving money!