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4 Unexpected Ways Store Credit Cards Can Make Your Life Better | store credit cards

What is a store credit card anyway? Simply put, a store credit card is provided to a business by a retailer, who is generally a major store or department store. A retailer is not limited to just department stores, but can apply for this type of card for any major or local retail store. What's more, these store credit cards are often offered with major rebates as well. How is a store credit card different from other credit card programs?

There are many differences between store credit cards offer. One of the first major differences is the credit limit. The amount of money that a particular retailer is able to charge for purchases depends on the “limit” on that particular card. So, the lower the limit, the less money the retailer will be able to charge. If you find a store credit cards offer with an extremely low limit, then you should be careful. You do not want to get into a situation where you are unable to make your monthly payments.

Another big difference between a regular credit card and store credit cards is the interest rate. Many retailers offer interest free terms to their customers. In addition, many retailers offer discounts or rebates for regular customers who make use of their store credit cards. Again, it makes sense to shop around in order to determine which retailer would offer you the best interest rate.

Credit card purchase APR is another big difference between store credit cards tend to be much less than a standard credit card. The APR is the Annual Percentage Rate and the lower it is the better. Generally, the lower the APR, the better off you are because it means that you will have very little interest charges over the long run. If you can pay off your balance at the end of every month then this will save you money in the long run. For people that need to make large purchases, a longer term APR may be better.

Many people are concerned about their credit rating and how it affects their finances. Store cards allow you to build up your credit rating and manage your debt with low credit limits. However, if you do not pay off your balance in full each month, then your interest charges will eat up all of the interest savings. If you are not careful then within a few months you will find that you have reached or nearly reached your credit maximums. Then, unless you have extra money put aside, you will find that your credit rating is not improving.

The other major difference between a store credit card and a regular credit card is the credit utilization rate. Credit utilization rate is the percentage of available credit that is used by the card holder. If you use a high percentage of this available credit then you will find that your interest rates will be higher than someone with a lower percentage of available credit. On the other hand if you use a lower percentage then your interest rates will also be lower. A good rule of thumb is to use at least 60% of your available credit.

If you already have a store credit line and you would like to take advantage of some of the perks that they offer then you can also consider an apr deferred balance transfer. An apr deferred balance transfer means that you will start off with a higher interest rate but once you have paid off some of your current balance you will be able to transfer your balance to another introductory offer balance card and once again you will be able to pay off the balance without any annual fees or balance transfer fees. These perks are usually made in the form of low interest rate transfers, waived late fees, and cash back. All of these perks are offered at low or no annual fee and some come with free perks such as airline miles, merchandise, and more. All of these perks can make paying off your debt a lot easier and it can be very beneficial because after all, who doesn't want to get a little cash back every month?

Another way to save money when it comes to an APR store credit card is to look for one that offers a grace period. Most of the time these cards will have a longer grace period of anywhere from three months up to three years. This is a great way to not only get rid of any balances but also pay them off at the end of the grace period. Some companies will also offer bonuses of the first thirty days at a reduced rate. These bonuses may be something such as a percentage of your total purchases or a point system. You will be able to find a great card that has all of the perks and benefits you desire.

 
4 Best Store Credit Cards & the Ones You Should Avoid  Milk + Honey - store credit cards

4 Best Store Credit Cards & the Ones You Should Avoid Milk + Honey – store credit cards | store credit cards

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