Store credit cards are much like regular credit cards, where you get all the benefits and have to pay an interest in return. However, both are different in many ways. Basically, a retail or store credit card is offered to customers with a whole range of other offers, and it can be used at the concerned shop or retail outlets of the same company. In this post, we will talk of some of the differences between credit and retail cards, along with ways of making the right move.
Knowing the differences
Regular credit cards can be accepted anywhere where the seller/service provider is ready to accept payment on cards. On the other hand, retail credit cards can be used at specific places, mainly in the outlets and partner shops and websites. In terms of interest rate, the retail cards tend to have a higher APR and interest rate as compared to regular cards, which is something to be considered. Most retail cards have a number of offers, discounts and special privileges, which are limited to the regular users and card holders. Not to forget, retail cards can be obtained on a bad score, as well. How to choose?
If you are new to using retail cards, you might want to crosscheck a few options. Keep in mind that the interest rate should be affordable and as low as possible. Most people end up taking a high rate of interest, simply because they were lured with the regular discounts. The special offers and rebates are often temporary, but the interest rate is going to be a constant factor. As a prudent customer, you may also want to know if retail cards are impacting your credit score. In many cases, people have abused retail cards, only to cause more damage to their score, especially in the long run. As for the discounts, you have to make sure that the introductory offers are good enough, and the discounts should be as regular as other known cards.
Knowing the cons
All good things have a dark side, and retail cards are no different. The most debated aspect is the interest rate, which can go to as high as 30% with many cards. Also, there are many companies that tend to add hidden charges, so it is always a good idea to seek complete details in advance. One of the other aspects is the relation between interest and discounts. It has happened with many cards that the user has ended up paying huge in form of interest, while the discounts seemed to be very less in comparison.
Store credit cards may be amazingly good for some customers, but it is always a good idea to compare a few ideas. You can check some of the sites like http://www.creditcardblogworld.com/store-credit-cards, where you can find a lot of other details. If you are regular at an outlet and like to get offers around the holiday season, these cards are worth paying, provided the interest rate is genuine and clear.
Author Bio: Willie DeJarnette is a known name in writing about credit scores and other things related to finance, and he has worked in the industry for close to five years.