“I was just in a store and getting ready to check out and the clerk asked if I had a store charge. When I responded no, I was told that if I opened an account right now I would get an additional 15% off today’s purchases. Should I take advantage of this?”
There are pros and cons to these offers. First of all, almost all store credit cards start with an interest rate of 20% (or higher). If you plan on carrying a balance, this is NOT a good choice for you! If you want to take advantage of the offer just for that purchase, and you don’t plan to use the card often, then it might be worth considering. You need to be absolutely sure that the balance gets paid off in full each and every time. Just remember that each new application inquiry lowers your credit score, and having too many inquiries lowers your credit score even more, especially on new accounts with no payment history. Take a few minutes to READ THE TERMS of the credit offer and weigh the instant savings versus the long-term effects. That will help you to make the right decision.
Jill Russo Foster is the author of Cash, Credit, and Your Finances: The Teen Years. She provides practical tips for every day finances. Learn more about protecting your credit and living within your means, with Jill’s popular free reports and bi-monthly ezine, available here ==> CashCreditandYourFinances.com
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