Sharing Daily Discoveries About Personal Finance And Business Topics

Store Credit Cards

financial literacy

Today at went to the mall as I decided to buy a new Sonicare toothbrush since the one I had was currently one of older original models that seemed to be showing its age. Before taxes it was about $150 and of course I used my credit card for the purchase. While proceeding to pay for the item, the cashier asked if I wanted to save an additional 10% off my purchase. At first I thought there was something special about the product as the person in-front of me purchased a ton of stuff and wasn’t asked the same thing.

She then explained how all I would have to do is sign up for the store’s credit card and that she could process it right away. I politely declined though as for one thing I can see having a bunch of credit cards as a being a bit redundant. Another reason why I don’t sign up for store credit cards is because, from what I was told and read, opening too many credit card accounts like that can also hurt your credit score, so I figure that I may as well not get into the habit of it at all in the first place.

I know from a business point of view it’s a great thing as the company can save a lot of money from the card transaction fees by getting people to use its own store credit card. I only know about two people who sign up for virtually every store card as long as it gives them some kind of a discount. I even read how some people suggest that you should simply sign up for the card and then close it once you pay off the balance. Sounds like too much of a hassle to me and not having like say 10 different credit cards has personally been a great way to stay organized financially when it comes to using credit cards responsibly.

Comments to Store Credit Cards

  • My decision on doing things like signing up for the store card or joining some sort of membership club depends on the savings. If I am going to save $20 or more, than it’s usually worth my time to sign up, then cancel the card later after paying off the balance. I’ve never seen that hurt my credit score. I think that would only happen if you applied for a lot of credit cards in a short period of time.

    joewatch 7/30/2007 7:45 am
  • To my knowledge, the second you open up a new credit card account it affects your credit score right from the start. Now by how much and many you would need to open to really drive it down is another question.

    Alan Yu 7/30/2007 5:06 pm
  • It’s better to have one credit card but let it suit you most of all. Just define what shpere is closer to you and choose the best card to help you save money.

    Thomas 11/26/2007 2:40 am

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