Store credit cards: Are they really useful or simply some kind of trap?

By | September 10, 2014

The whole concept related to credit cards has been a controversial subject since its inception. There is a category of people who have benefitted from them to a great extent, and there is a category of people who suffered great financial setback due to the credit card bills. Well, it appears that if one knows how to use them in a sensible manner, than credit card can prove to be of great help. Among the category credit cards, store credit cards are gaining popularity at a fast pace. The majority of the departmental store credit cards charge interest rates in the range of 20%. However, there are few pros and cons of applying for a new store credit card that are mentioned below:

Pros of Store Credit Cards .


Great promotional offers: A store credit card is basically meant for offering discount, exclusive promotional offers, exclusive coupons and other kinds of perks to regular and frequent shoppers. Generally, it appears to be a win-win situation as it becomes possible for a retail store to increase the sale and it gets easier for the shoppers to avail great discounts while shopping.

 walmart credit card

Facilitate in recreating a credit history: Those, who have been looking for a reliable and effective way to recreate a credit history may think of store credit card. Generally, it has been observed that instead of turning away the appliers who formerly had bad credit score, various retail stores don’t mind in offering them store credit card. This attitude of retail stores really help such people by facilitating them in rebuilding a credit history and getting rid of tarnished reputation.

Cons of Store Credit Cards.

Affect credit score: Apparently, the decision related to applying for a store credit card can have a negative influence on your credit score, due to the addition of one more credit card.

High interest rates: If one has a glance on the big picture, then one would be able to see that due to the high interest rates, the long term disadvantages outnumber the advantages. If a card holder fails in making a timely payment for the card, he would end up in paying a hefty penalty in the form of interest charges and that means he would end up incurring more loses in comparison to the amount saved by him.

Low credit limits: Store credit cards offer low credit limit since their aim is to tempt the customers to buy more and that can only be made possible if they keep the credit limits low.

Limited use: Since a store credit card is limited to a specific store, it is not of much use. Due to this reason, the majority of people prefer to keep the temptation of applying for a store credit card at bay.


According to the opinion of a few people, store credit card is nothing but a kind of trap because it is being designed in such a tactful manner that customers get this feel that they are the beneficiaries. As far as the discount and other promotional offers are concerned, they can be availed by merely signing up for email newsletter with a store. However, if you really desire to apply for a store credit card then ensure comparing the card with the store credit card offered by other retail store, in order to avail the best offers and discounts.


The Risks of Store Credit Cards – YouTube Video

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