Avoiding Costly Mistakes Relating to Store Credit Cards

Store credit cards are pretty alluring propositions because they often promise and come up with enticing or whopping discounts on the first purchase. However, it is a good idea to know and steer clear of some common mistakes once you sign up for a store credit card. However, you must exercise caution as reckless use could lead to high-interest debt.

What Do You Understand by a Store Credit Card?

A store credit card is supposed to be a credit card; however, it may be used only in a particular store, a chain, or group. Remember store loyalty cards are not the same as store credit cards. Loyalty cards help you gather points every time you buy something at a specific store. According to Forbes, a store card is supposed to be a kind of credit card and it can be only used for making purchases in a specific retailer. A store card is known to offer enticing discounts but the credit limits are relatively lower as compared to the standard credit cards. 

Merits of Store Cards

  • Report to the credit bureaus
  • Can assist in building credit
  • Much easier access as compared to a full-service credit card
  • Loyalty points, discounts, and even early sale access arranged specially for cardholders.

Mistakes to Avoid

Mistake: Relying Only on Making Minimum Payments

Store credit cards such as MasterCard Rewards Card let you borrow money while loyalty cards do not. A common blunder many cardholders make is paying just the minimum amount due on their credit cards. Store credit cards offer credit at very high-interest rates, and if you get into the habit of making only minimum payments, you will end up with insurmountable debt and interest charges. Experts suggest that you should make it a point to pay your bill promptly within the stipulated time and make your full payment if you are thinking of avoiding unnecessary high-interest charges.

Mistake: Carrying a Balance Post Availing a Specific Financing Offer

You may be thinking of opening a store credit card to get benefitted from special financing offers such as no interest charges for two years. The store credit card offers to prove to be immensely helpful in paying for massive purchases over a period with absolutely no interest charges. However, do not forget that they would surely be including deferred interest terms.

You will be charged a deferred interest amount if you keep carrying a balance even after the special financing period has come to a close. You would end up paying a massive interest amount that has accumulated since the precise date of purchase. Remember to focus on paying off all charges associated with special financing offers just before the particular promo period comes to a close so that you do not have to encounter any unanticipated expense.

Mistake: Overspending for Earning Rewards

Store credit cards are very popular as they come up with enticing discounts and exclusive cardmember perks for motivating you to shop more. However, you must tread with caution. Do not end up spending more than what you can afford. Focus on staying within your means. Do not go on adding more and more items to the cart for getting massive discounts. Remember overspending will adversely impact your financial stability. 


Remember to avoid the already discussed store credit card mistakes. Also, try not to avail store credit cards to borrow money for an extended period. 


Shanto is a professional blogger. He love to write about all latest topics. He is working as an seo expert from last 8 years.

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