We might have experienced, in one way or another, getting offers from our favorite stores. For instance, they could offer their very own credit card that allows us to get up to 10% discounts on our purchases. That can be a very hard thing to resist, especially on branded clothing or techie gadgets. After all, this gives us savings of up to $30.
But before we fall into the pit once again, it is best to weigh pros and cons before making hasty decisions that could make or break our financial future.
The first thing we should always ask ourselves is whether we need to have a new credit card. Although it is always enticing to get a new credit card approved in just one day – no hassles and all – and you get the discounts right away, we should always think first if we really need this. Doing this could save you from signing up at every store that offers instant approval cards and thus, you avoid hurting your credit score.
Besides, if we pile up on credit cards, it could also mean that we pile up on debts. If we have a lot of credit accounts and we have difficulty monitoring each one of them, this could become a very dangerous thing – especially when shopping day comes.
Store credit cards are also very much different from the ordinary credit cards. Shopping can be very tempting and once we get hold of that plastic card, temptation can be very hard to avoid. And once we have piled up on our purchases, it would only be too late for us to realize that the interest rates are very high and it is already hard to pay off the piled debts.
Credit cards could be an ally but only when it best suits us and only when it is used and swiped wisely. There are other types of credit cards that could match a person’s lifestyle. It might be better for us to get a cash back card than the store credit card or even just one with a low interest rate, which we could use for emergency purposes only.
So, do not be fooled easily. The next time we see those gorgeous looking boots or those sexy tops on the shelves, it might be better if we pull some cash in the stash first than to get the plastic card and suffer in debt for a long, long while.