Retail and Department Store cards are credit cards which can only be used at the store which issues them, even if there is a Visa® or Mastercard® symbol on the credit card. Almost everyone has been offered one of the cards when making a department store by the sales clerk: “Would you like to open a credit card and save 10% on this purchase?”. Are these cards worth having? We list some advantages:
- Store cards can help you build credit because they may have a lower bar of credit requirements and are therefore easier to get.
- Just like regular credit cards, rewards programs are sometimes available. Some cards offer “points” in exchange for every dollar spent using the card. Often these points can be exchanged for gift cards or rebates.
- You may receive special financing deals. Many introductory offers will allow you to buy something “same as cash”. Example: you may purchase that large screen TV and pay over 36 months interest free by opening a card.
- Sometimes opening a department store card is like joining a club. You may be invited to exclusive events where the store opens up early and offers special discounts or promotional discounts to card members only.
- You may receive other perks such as free gift wrapping, alterations, free shipping, etc.
When you are at the cash register and are offered a department store card, most likely you aren’t going to have time to study up on the advantages of the card. If you are really interested in opening a card at that store, it may be to your advantage to wait and look up the terms. However, if the introductory offer is really good, you could use the card for that one time only and then use your regular credit cards (if you must use credit) after this time.
What are the best deals out there that you’ve found? Leave a Comment!
Popularity: 17% [?]
5 responses so far ↓
1 De // Jul 10, 2008 at 10:34 am
With my Macy’s card, I get 12 free special services a year. I can choose from free gift wrap, basic clothing alterations, and package delivery up to $60. Pretty cool perks.
2 Kristy // Jul 10, 2008 at 11:51 am
Really! Maybe I should consider signing up with Macy’s.
3 David // Jul 10, 2008 at 6:48 pm
I agree with your points, especially mentioning that it may be worth waiting and looking up the terms.
While these credit cards can help establish a credit history, they are also the type of cards that almost anyone can get. The inquiry alone in the application process will temporarily hurt your score. It’s good to remember not to jump on such offers when you’re making a bigger financial decision ( car or home) in the near future.
4 tony p // Jul 11, 2008 at 4:59 pm
Macy’s good. So is JCP, which offers special coupons to account holders. I keep mine but don’t use it due to the interest rate, but Penny ’s offers value these days, imo.
I wouldn’t load up on these cards, though, as the limits tend to be puny and the APR high, and Citi is behind most ( Argh!!!)
5 De // Jul 15, 2008 at 9:50 am
Kristy check out this link
http://www1.macys.com/service/credit/overview.ognc
I spend alot at Macy’s though so I get more benefits, but even the lowest spenders get some benefits. Doesn’t hurt if you PIF every month.
Leave a Comment