Did you know that these in-store cards can hurt your credit score?
Not only that, just having them in your pocket when shopping, poses a serious temptation that can turn your credit poor, because of overspending.
In-stre credit cards are becoming more popular, as the credit squeeze continues. Applicants for a standard credit card who got refused, often successfully apply for one of the merchants' store cards. They seem to accept that the interest rate is often 5-10% above that charged by the banks. And, the card is very handy, when you do not have enough cash to buy the merchandise you desire.
But, by spending the money you don't have, you're endangering your personal budget. You simply may not be able to repay the monthly balance in full, and be charged that high interest rate, that will erode any savings you'll make on the discounts offered by the store. Even if you pay the balance each month, each in-store card represents a line of credit to the credit agencies.
They aren't going to like you opening more lines of credit, especially in a short time. Your FICO score will be adversely affected.
