Store Credit Cards - Are They So Profitable?

While making purchases at your favourite retailer, you may pay attention to store credit card offers. Really, 10% of discount may seem a great advantage. Take your time and think twice before applying for this store credit card. You will get rewards and discounts as well as high rates and large fees. Nowadays, large department stores and shops try to encourage customers to spend more. They offer special credit cards to their regular customers. Such offers help to save a considerable sum, but they usually come with too high interest rates. Let's sort out how profitable store credit cards are. No doubt, shopping is an integral part of our life. We buy lots of things every day. Have you ever thought of signing up for a store credit card to get that 10% discount? The aim of retailers and department stores is quite clear. They wish to get more customers soever. Really, having a Bloomingdale's card, you will be inspired to shop there rather than in a store where you have no discounts. Making store credit card appliation, keep in mind that all rewards and discounts do not come from nowhere. They are not gifts. Anyway, store credit cards are not the same. For instance, a Gap credit card offers a 10% rewards certificate. The interest rate on the card is 21%. Default rates are higher.How do you think, can those rewards cover these huge rates? Besides, there is another problem with this type of plastic. It is their reward scheme. Some retailers allow you to start earning points after your first credit card purchase. But many store credit cards require you to spend much to qualify for credit card rewards. And still, do you wish to charge $1,000 to get that $25? Is it that profit you dreamt of? Finance experts give advice on this matter. If you want to buy a big-ticket item with that large discount, apply for this store credit card, and pay off the balance at once to avoid paying interests. Then you may cut your card into two halves. Perhaps, you will find it strange to hear, however, it can help you to avoid further problems with this card. Eventually, if you are looking for a perfect deal, you'd better choose a regular credit card with low interest rates and zero percent introductory rates. Thereby, you are free to charge your purchases and pay no interest, at least for a that introductory period. Financial directory