Popular store credit cards can save you money on ordinary purchases. Here are a few things to consider before you open a new store credit card account:
Lower interest – Zero percent financing offers are a popular offer for new store credit card users as a way to make larger, financed purchases more attractive. Be on the lookout for low interest financing from electronics and furniture stores – two vendors that sell high-priced goods customers love to finance.
Credit limits – A higher credit limit is always better for the borrower, especially when one considers the effect on his or her credit score. Always try to get a high credit limit card when you can, and always ask twice per year for a credit limit increase. While most cards start with low limits, businesses are usually open to the idea of semi-annual balance transfer increases for good customers. Expect a starter credit line of anywhere from $200 to $1000 on any store credit card that you open.
Discounts – Use your card inside the store to save as much as 5-20% on your purchase. Popular clothing and home retailers offer discounts for customers who use their store cards for their purchase. Common discounts include cash back for card users as well as large 5-20% bonus savings for people who spend more than $50 or $100 at their favorite retailers. Gas stations and grocers usually have the smallest discounts while apparel retailers have some of the largest.
Virtually every retailer has a proprietary store card for their specific retail outlet. If you are not interested in carrying around several credit cards, consider a company like Discover, which has an online cash back center for users to get 1-30% cash back on any online retail purchases. Those who can justify opening new store cards would be wise to do so, however, as the best benefits always come straight from the store.