Do Store Credit Cards Save You Holiday Cash?
October 19, 2008 by Jennifer Chait
Filed under Holiday Thrift
Now that it’s the holiday season, department stores, and plenty of other stores, are going to be hounding you to open a credit card account. They’ll sweeten the deal by saying, you can save a 10-20% savings on your first purchase; which could save you a bundle if you buy a large amount of gifts at one place.
The downside: The only way you really get the discount is if you pay off the card once you get the first bill. Rates on store cards are insanely high. As soon as your rate rises above 15-18% or more, you’ve lost the discount almost immediately if you only pay the minimum.
So, if you honestly are planning on paying the card off, right away, then you could save some holiday cash, but if you know you won’t pay the card off on the first bill, skip it. A better alternative is to one, buy less and make it a less consumer based holiday season, or two, shop around. Sales are everywhere right now, you can find 10-15% off items without a credit card discount.
Another important factor to consider is the credit check done for every individual card you apply for…it may not hurt you but do your research before you start opening store cards!