You probably have been asked the question “Would you like to save an extra 10 percent today ” when checking out at a supermarket or retail. Faced with this question, did you follow the suggestions of the saleswoman to apply for store credit card in exchange for an instant discount? If you did, have you ever considered the impact of it on your credit or finance life? In fact, based on a survey, 21 % of Americans have store credit cards over the past two years but 45% of those did not notice the influence of them on future life. Some of these cards provide customers with many benefits and rewards, but others may not as good as you’d think. Thus, you should read the terms and offers carefully before filling out the card application.
- Read Card Terms Carefully
Usually the saleswoman will explain to you the benefits of the credit card and how it will help you save more. But that’s not enough. What is the APR? What is the credit limit? Can the offers only be used on your first purchase or still can be used for continued savings? You need to figure out these terms but not only limit to those above. For example, Lowe’s consumer credit card offers customers special financing and 5% off discount offer but these two offers can not be combined. In short, although discounts and benefits are tempting, they are not the only reason that supports you apply for retail credit card.
- Pay Attention to Benefits and Offers
Benefits and discounts are the most important reasons for most people who apply for retail credit cards. Usually different retailers may offer benefits in various forms. If you have a store credit card for GAP, and Old Navy, you can get $5 points for every $1 you spend, plus earn 1 point per $1 spent everywhere else your GAP or Old Navy Visa card is accepted. Walmart credit card had totally different offers. You can earn up to 1% cash back on all purchase, without paying the annual fee. Sam’s Club Discover credit card allows members to earn up to 2% cash back and Sam’s savings members can earn up to 1% cash back.
- Use Your Retail Credit Card in Daily Life
Once you have applied for a store credit card, try to use it regularly, not just at shopping center. Some retail credit cards support discounts in indicated spots. Goodyear credit card can double your rebates and saving offers during promotional periods valid at 4,500 tire and service locations nationwide. ExxonMobil personal credit cardholders can pay for everything from gas at the pump to food and supplies at over 10,000 Exxon and Mobil stations. Besides, some store credit cards offer long term payment period and encourage you to shop frequently. Home Deport project loan provides 84 fixed monthly payments with flexibility to pay off anytime. Sears credit card will send monthly savings and coupons, special financing offers to customers.