Advantages and Disadvantages of Store Cards

[ Bookmark this page! ] [ get HTML Version ]

Selecting a credit card
Are you looking for a credit card? Are you confused about the charges, annual percentage rates or the rewards the credit card companies offer.

There are several things you should consider before making your decision.

First of all look into the credit card terms and conditions. Find out what the fees are when making purchases on the card, transferring balances to the card, mak... Read credit cards article



Best way to do a credit card balance transfer
Balance transfer is an easy way to escape the high interest charged on credit cards. Card companies, therefore, get large number of credit card balance transfer applications. Many people look upon this opportunity as a means of ending their debts. However, they are mistaken.

The monthly payments are still to be maintained. The only difference is that a zero or low interest rate could be... Read credit cards article



Advantages and Disadvantages of Store Cards
We all love a bargain and when we're faced with a store card offer at the sales counter as we make a purchase, the temptation can be difficult to resist. At face value store cards can seem appealing - discounts on purchases, invitations to promotional and preview events, extra money off in the sales, and glossy member magazines - and after all, they're just another credit card, aren't they? In fact, no, they're not just another credit card. Although they may offer some tempting perks, they can be very expensive methods of borrowing that can lead to spiralling debt if the balance isn't paid at the end of the month. There's no reason why you shouldn't open a store card account if you're sure it's going to be an appropriate financial arrangement for you - but you should weigh up all the pros and cons carefully before you make any decisions.

Check interest rates and hidden fees:

Lurking behind the fabulous special offers and discounts are various potential charges and fees that could send your debt soaring out of control. For a start, the interest rates can be more than double those of bank credit cards - sometimes as much as 30% APR. And then there's the hidden charges, which can really catch you unawares. Watch out for penalties for late payments or for defaulting on payments. Some cards even charge interest from the purchase date if you don't clear the balance at the end of the month.

Pay off the balance if you can:

Why shouldn't you take advantage of the offers if they're there for the taking? You could save a lot of money by opening a store card (for example, discounts of up to 20% may be offered with your first purchase), as long as you are sure that you will be able to pay the bill before interest is charged. Check what the bill period is - it's normally 30 to 50 days. Also find out whether there's an interest-free introductory period.

Work out a budget:

If you plan to spend a lot using the store card, work out a monthly budget of how much you will need to set aside to pay the bill, to determine whether you can afford it before you sign up to anything.

Investigate other credit options:

Store cards seem to easy to set up - just completing a short form in front of a sales assistant who'll make a quick phone call to arrange it all for you - but these days it's really not difficult to obtain credit from a bank, and you'll normally get better rates with a bank credit card than you would with a store card. Shop around before you make any decisions - investigate what the banks have to offer.

Don't be afraid to ask questions or say no:

Sales assistants can be quite persistent - they're often on commission for the number of store card accounts that they open. Don't allow yourself to be bullied by them. Feel free to ask any questions and take as long as you want to mull over it. In fact, you don't need to sign on the spot - take the forms and documentation away so that you can examine them in detail at home before making your decision.

Don't go overboard:

One store card might be tempting, but don't get carried away. The more store cards you have, the more difficult they'll be to manage and keep track of - and that's when your debts can start to spiral out of your control.

Bookmark this page | Search this site | E-mail to a Friend



Eliminate Credit Card Debt

To eliminate credit card debt is amongst the best thing you can achieve for your finances. Getting into debt is very simple, but getting out of debt is a lot harder. Though it may be difficult, eliminating credit card debt can be possible with the right type of help.

If you have a minimally sized debt you can combine your balances onto one card that offers a limited time period of no interest. If your credit rating is good then there are many firms who will give you this option. Most credit card companies do such an introduction that usually lasts anywhere from 6 months to one year. You should have plenty of time to get rid of your debt by paying off the debt and not any interest or other charges, dependent of course on the size of your balance. However, if you have large credit card debt then this may cause more problems when the zero percent interest period is finished and interest starts to be charged.

With bigger balances you can either get a home equity loan or invest in credit counseling. A home equity lone can only help you when the balance is large and you are unable to avoid interest rates on your card. With a home equity loan you can get a lower interest rate by dealing with a bank and pay the card balance off totally. However, if this is not manageable then you should use credit counseling or a credit eliminating company. The credit counselors can negotiate lower monthly repayments with the credit card firm and make sure all your money goes to pay the debt only and not any interest. Only use credit-eliminating companies as a final dire option and for very severe circumstances. They will work for you to negotiate with card firms to write off your debts without any payments.

As you are now aware, there are varied options for debt relief that can help you to eliminate any credit card debts. If you take the time to phone, do any paperwork, and have the will to do it, you can resolve this type of debt considerably faster than by simply paying the bare minimum as required on your credit card bill.




Top rated articles for credit cards

1. Dealing with Credit Card Mail Offers
If you are annoyed by the constant credit card junk mail that you receive, then you are not alone. People all over the country are receiving literally dozens of credit cards offers every year, most of... Read credit cards article

2. Wedding Loans
Wedding is the heavenly bliss that is showered on you. It is not just the bonding of a couple, but the bonding of two families, their traditions and the cultures also. It is one of the most special da... Read credit cards article

3. Best Credit Card
When you go check your mail how many credit cards are there in the box? Most people get a credit card offer in the mail every week; one credit card company or another is trying to get you to get their... Read credit cards article

4. The Zero Percent Credit Card Interest
First of all, no credit card is going to offer 0% financing forever. Let's just make sure that is understood that at some point after you activate your 0% APR credit card, usually 6 months, your APR w... Read credit cards article

5. Finding The Best Balance Transfer Options
When it comes to balance transfers, there are many benefits for those that find just the right opportunity and take the best of them. There are plenty of opportunities here, though. The balance transf... Read credit cards article

6. How To Get The Best Credit Card
Credit cards are basically every where almost every American have at least two credit card. Most of the time the ones who are going to apply for a credit card are the kids who have started working alr... Read credit cards article

7. Cash Back Credit Cards and Rewards
The benefits of cash back credit cards are easy to see. You spend some money and then you get some of it back just for using your credit card. But, is it really that easy? Can this be something that j... Read credit cards article

8. Credit Card Debt - A Low Interest Rate Credit Card
Credit cards have provided many people a convenient way to make purchases without using any cash. In fact, many cardholders have credit limit that are twice that of their monthly income. This feature ... Read credit cards article

9. How to get a Bad Credit Credit Card
Checkbooks and even paying with cash is becoming less frequent as more and more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards ... Read credit cards article

10. Cash Back Credit Card Solutions
Cash back credit cards are becoming more common as more and more merchants and retailers accept credit cards as a form of payment. Although cash back cards might seem like an altruistic move by card i... Read credit cards article


Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Advantages and Disadvantages of Store Cards
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Add website or submit URL link of your site to 1000 free directory