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Why You Should Avoid Store Credit Cards This Holiday Season

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A report from LendingTree® said that 56% of those who have had store credit cards in the past have regretted getting them.
Sure, those sign-up bonuses can be great but if you carry a balance on one of these cards, the interest you pay with those high APRs can easily exceed what you saved with that initial discount offer.
While the salesperson does a great job of talking about the perks and discounts you can get when you sign up, they almost never do an equally great job of talking about the interest rates and high payments you’ll have when you use it. Typically, retail cards come with way higher APRs than non-retail cards. In fact, according to, the average APR for a new store credit card is 24.4%.
Here are a few tips from Lending Tree for getting the most out of a store credit card:
  • Beware of deferred interest: While special financing deals really can save you big bucks, it's crucial that you comply with the terms and conditions, because if you don't it can cost you. Fail to pay the purchase off in full during the zero-interest period and you’ll get hit with a bill for all the interest you would’ve accrued back to the initial purchase date. 
  • Know APRs and fees before you apply: This is good advice with any credit card, but it's particularly important with store cards because the interest rates are so high, and the pressure is often on to make a quick decision.
  • Anticipate deadlines, exceptions, spending minimums: Virtually every card has quirks and nuances. The more you know about them before you apply, the better.
  • Look for the other logo: Some store credit cards can only be used with one retailer or one group of retailers. Others can be used most anywhere. That's an important distinction.
  • Resist the pressure: If you're offered a card at checkout and you aren't sure what to do, say no and then read up on the card later. If the offer still sounds good to you, apply next time you shop there. 
Look for a better alternative

Or, you could bypass all of the potential downfalls of the store credit cards and seek alternatives from Power Financial Credit Union. We offer personal loans and low interest card rates as a great alternative.
Because we are a credit union, the interest rate on our credit cards is capped at 17.99% unlike cards from big banks and retailers. While you won’t get 20% off your first purchase at your favorite store, you also won’t be counted in the 56% of people with buyer’s remorse after opening that store credit card.