The Truth About In-Store Credit Cards

Why In-Store Cards Aren't a Good Choice
We've all been offered an in-store credit card by a clerk at our favorite retail or department store. The application and approval of the card usually comes with a 10 to 15 percent off today's purchase and 5 percent off every purchase afterwards which sounds great, but you may be surprised that these types of in-store cards really aren't that beneficial. A few of the reasons why you should avoid these in-store cards and stick with traditional ones include:

You Really Won't Save Money
While in-store cards may be a no annual fee credit card, they really won't save you any money when compared to a credit card backed by a major creditor. The discounts they offer generally just entice shoppers to spend more, much like couponing does, because a cardholder has to spend a substantial amount of money to really feel like they are saving with their 5 percent discount.

You Can't Use the Card Anywhere Else
People have credit cards to help with large purchases and to build up their credit – something they are able to do by using their credit cards where ever they please. However, with an in-store credit card, you can only use your card in-store and they generally aren't backed by a major credit card company so they don't offer as many rewards and you can't use them when you need them most. Either of which aren't qualities in any credit line you possess.

The Benefits are Terrible
The only benefits offered by in-store credit cards is the discount offered if you shop in-store. With a traditional credit card you can get airlines miles, cash back, and even dollars towards your kid's college fund. 

So if you are truly interested in getting a card that will offer you perks, don't get an in-store card. Get a best cash rewards credit card that will offer you perks for all your purchases no matter where you spend.

Credit cards are something that should be a benefit to have. Not something that you rack up high interest rates and monthly bills with. So the next time you are offered an in-store card, politely decline, and stick to your traditional cards.


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