There are some people who love getting department store credit cards and there are others who see them as senseless and would rather just stick to their major credit cards when making their purchases. Both sides have their reasoning and we will take a look here at some issues that you might want to know before you go filling out that application.
With a store credit card you can sometimes reap the benefit of receiving free items and taking advantage of store promotions that are only available to their credit card holders. Department stores will sometimes give away the free items when you make a purchase from them using their card, it does not matter if you make your purchases in the store or online. Sometimes when you are shopping online they will even offer free shipping when you use their credit card. Another great thing about some department store cards is the great deals that they offer when you make a purchase with their credit card. Many times they will offer you interest free specials that will last for a certain amount of time. For instance, they might offer a one year free interest deal when you make a $1000 purchase. This is a terrific bargain for shoppers as they will basically pay no interest at all if they pay off the item in less that one year.
Now for a few cons about department store credit. When you have a department store line of credit, your interest rates on the average will be much higher than that of a major credit card. You have to be careful here as not to drown in debt and have a difficult time getting your balances down. Another disadvantage is that your card is only good for that particular store and can’t be used anywhere else unlike a major credit card that can be used anywhere. If you have too many store cards it may also have a negative affect on your credit report as you will have many lines of credit open with too many creditors. It may actually be wiser to apply for secured credit cards.