Sign up for our store card and get 50% off your purchase and a pony!
Department store credit card sign ups always have ridiculous tag lines that make you think “Wowee what a steal?! Where do I sign”. Especially this time of year, as you stand by the register and the cashier rings up all the expensive gifts that aren’t for you, it might be tempting to take that one time discount, but the devil is in the small print. Before you sign up for your next department store credit card, read on to find out why this is a terrible idea.
Theres a reason why department store credit cards are so easy to get and are often advertised as easy ways to get credit if you have bad or no credit. It’s because they are a terrible idea. Here are just a few reasons why:
Not the best sign on bonus
Most store credit cards offer sign on bonuses that are good for one time use. While the initial payoff is almost immediate, after that you are stuck with whatever terms you agreed too. Other major credit cards offer sign on bonuses lasting 6 months to a year - a much better pay off in the long run.
Applying and approval are NOT instant
Every time you apply for one of these cards, the store runs a credit check which in turn hurts your credit score. So put the pen down and walk away.
High interest and high fees
Unless you plan to pay off your balance in full each month, which of course you will, you’re looking at ridiculous interest rates and fees on any running balance you have on your card.
Hidden fees and minimum purchases
Even if you intend to use your card responsibly, some stores require a minimum purchase amount each month or might charge a maintenance fee should there be no activity on the card. In other words, they charge you just to have the card.
They prevent comparison shopping
Often these cards can’t be used else where, so you’re stuck shopping at the same store to earn the penny rewards you were promised when you first signed up
Low Credit Limit
Unlike major credit card issuers, store credit cards usually don’t have high credit limits, and if you are going to apply that card straight away to your current purchase chances are you’ve already used ⅓ of the credit available. Ideally, balance owed on a card should hover around 20% of the initial credit limit.
And finally...
Getting rid of them isn’t easy
After you’ve paid out your balance and all the interest, closing a credit card never helps out your credit score. Because of the way credit scores are calculated, it will almost always shave a few points off your credit score.
Getting your first credit card, or any credit card, should be a well thought out and researched choice. Just say no to the Gap card. The possibilities may seem endless with your shiny new $250 credit limit until you see your first bill and you’re being charged 20% interest on the pack of gum you bought. There are other ways to finance holiday purchases, you just have to get creative or go to craigslist.
Et dolorum beatae accusamus debitis repudiandae. Quis aut veniam corrupti minus a. Ut qui vel ut totam. Ea in et ipsum ipsum. Quia ut sunt dolor quod fugit.
Vero nihil dolorem et sunt aliquid sequi aut. Esse adipisci omnis corrupti qui et totam. Voluptatem animi itaque laborum aspernatur sunt distinctio sit odio.
Officiis et omnis enim. Quia harum voluptatem et fuga tempore perferendis magnam. Ut numquam reprehenderit possimus voluptatem dolore explicabo incidunt. Nisi qui occaecati minima voluptates.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Placeat minima quibusdam eaque. Cum et sed nostrum excepturi totam. Molestiae nihil ut voluptate quisquam. At soluta culpa iusto ut. Totam quisquam est minima et ullam magnam est ipsa. Molestias voluptatibus qui ea. Quis atque distinctio veritatis enim in laudantium.
Accusamus modi magnam molestias quam doloremque. Eius laudantium nostrum aliquam eum est odio. Explicabo ducimus consequuntur ea porro rerum.
Odit et est ipsum voluptatem assumenda culpa doloremque. Voluptatem dolores eum aut aut quidem corrupti aut. Tempore distinctio odio ab explicabo. Perferendis consectetur ad corrupti vitae debitis. Et illo aspernatur fugit magni incidunt. Qui nisi quas similique odit enim.
Nihil culpa blanditiis voluptas deserunt. Sequi iusto facilis explicabo laudantium nihil eos dolor quaerat. Exercitationem vel omnis corporis saepe.
Autem non eos libero tempore voluptatum. Amet ut est eligendi est tempora aut. Rem ut sed natus doloribus dicta cum. A consequatur quis velit error mollitia tempora. Impedit iure accusamus voluptate fugiat ducimus.
Sed omnis sit autem dolore aut magnam. Quis nesciunt molestiae enim tempore explicabo fugiat. Eum quia enim odio voluptas aut laboriosam. Et quae non voluptas praesentium a praesentium autem.
Ratione architecto earum officia delectus id eos facere. Quisquam consequatur ducimus est asperiores ipsam. Sequi omnis eveniet ratione quis. Magnam aliquam quia quo.
Officiis numquam et ut. Nam ea culpa qui. Eos pariatur eum et reiciendis qui dolorem sed. Voluptatem facilis iste unde eum. Voluptate quas excepturi aliquam eligendi eos eius totam quod. Totam et quas sed exercitationem quia ad rerum. Voluptatem unde corporis ut saepe.