Cash The Checks

When you get to a store, such as Sears, Macy’s, Best Buy, etc., and you make a purchase, they always ask you if you want to place it on your store credit card. If you don’t have one, they’ll offer one to you. They usually come with a discount, such as: 20% off on your first purchase or No payments til 2009. Should you do it? No!

Here’s a few reasons why NOT to get these store credit cards..

• The terms are not favorable with these cards. Store credit cards usually come with a higher interest rate than your usual credit card. There could also be a yearly fee.
• You’ll always know you have the card with you, making it much easier for you to buy things at that store.
• You’re more likely to make that store your “main” store, bypassing good sales and products available at other stores.
• When you’re offered a deal like: No payment until 2009, often times if you don’t pay your bill off in time, you’ll be retroactively charged all of the interest accrued throughout the years.

In the next couple of days, there will be a post with reasons why you should get a store credit card.