Houston Credit Repair: Department Store Card

Houston Credit Repair Specialist, Vanessa Perry explains the dangers of department store credit cards and if the interest is worth the discount in this episode of Ask Impeccable.

You Have Been Pre-Approved!

It is a great feeling when shopping and you get “pre-approved” for a department store credit card. This does not always mean your credit is 850, but it qualifies. Most of the time when you apply for a card through a store you get 10-25% off your entire purchase. This is a store incentive to get more credit card sign ups. Stores thrive off of credit card applications. If the stores are able to have card approvals they get ranked higher in the company. In store credit cards are the backbone of overall retail sales and revenue.

Is The Interest Worth The Discount?

Shopping is always great when you can get a deal, but being pre-approved is not always the best for your credit. That being said these credit cards can have insane interest rates. The interest rates can range up to the high 20% range. With having a department store credit card it is not “free money” and it does need to be paid in a timely fashion to avoid high interest and higher debt. When you add up the interest and probably increases the amount of points or money spent at that establishment it can create accumulated debt. Oftentimes these cards create unnecessary fees and interest  and some are easily forgotten. Thus creating credit issues.

Houston Credit Repair

The retailers are trained in retail and how to sell. The retailers are not trained in credit. When they use their sales pitch they suggest that the card will raise their credit. This is an example of a sales pitch with unverified information. If you have ever had a department store go derogatory or have questions on how to build your credit properly you should contact the credit professionals at Impeccable Credit Services.