We know the big bank cards are cutting credit lines and raising rates.
But store cards — the kind you can only use at one retailer — are not a good place to go for more credit.
Don’t be tempted by cashiers that ask “Would you like to save 10% on your purchase today?” every time you check out.
The interest rate on these cards routinely start at 20% or more. Carry a balance for a couple of months and that discount your received will be quickly eaten up by finance charges.
Be especially wary of store cards from furniture and electronic stores that come with offers of “0% interest for 12 months” or “0% interest for 24 months.”
You won’t pay any interest on that sofa or flat-screen television right away.
Customers who don’t repay the entire balance before the time is up are charged interest on the full price dating back to the date of purchase — and at retail store interest rates.
That’s the case even if they have a balance of just $1, or are late with their final payment by just one day.
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