| In 1958, a department store chain based in small suburb | | | | alluring discounts, it's easy to get carried away with |
| of Dallas, Texas issued a credit card that afforded | | | | your spending and end up with a pile of debt. |
| users a great discount on products bought from their | | | | Pros of getting store credit cards |
| stores using the card. Ever since J.C. Penney started | | | | Unlike regular credit cards, store credit cards are much |
| that trend, many other department store chains have | | | | easier to sign up for. This can make store credit cards |
| followed suit, realizing the potential profits of this. | | | | useful in establishing a good credit history. The lower |
| With discounts of up to 15%, store credit cards can be | | | | spending limits also mean that you are far less likely to |
| hard to resist. This can especially be true during holiday | | | | get carried away with your spending. |
| seasons such as Christmas when discounts can mean | | | | With department store cards, you can sometimes |
| a whole lot of savings due to high volume of | | | | obtain a financing option for larger purchases such as |
| purchases. However, as with most credit cards, you've | | | | appliances, furniture or electronics. Some stores offer |
| got to read the fine print and weigh the pros and cons | | | | their customers the option to pay for such purchases |
| before you jump on the bandwagon and get a store | | | | through a 6-12 month installment plan with little or no |
| credit card for yourself. | | | | interest. However, the catch here is default payments |
| Cons of getting store credit cards | | | | may result in a longer repayment period where interest |
| The greatest drawback of store credit cards would | | | | charges become applicable after this period. |
| be their exorbitant APRs. These can reach as high as | | | | Just like their regular counterparts, store issued credit |
| the upper teens. For some people, that simply isn't | | | | cards come with all sorts of reward programs that |
| worth it. If you tend to miss paying off your card | | | | you can take advantage of. In addition to these, most |
| balances each month, then you should forget about | | | | stores have a 'special savings' event whereby greater |
| store credit cards. | | | | discounts are offered during certain periods exclusively |
| Another disadvantage would be the effect of the | | | | for cardholders. |
| open lines of credit on your credit score. With all the | | | | |