Wednesday, November 16, 2005

How to Compare Store Credit Cards

How to Compare Store Credit Cards

Store cards are offered by merchants interested in extending credit to customers who shop at their locations. It's easy to qualify for these cards, but costly if the consumer doesn't know what features to review before submitting an application.

Significance

    When shopping for a retail store card, there are options. Many retailers will even offer Visa and MasterCard logo cards that have purchasing power anywhere, in addition to being used at their location. Other retailers will offer a credit card that can only be used in their stores.

Benefits

    When comparing retail store cards, benefits are important. Some cards will offer cash-back rewards for shopping at a retail location, while others will offer discounts and coupons. Consider where you spend the majority of your shopping dollars when comparing cards.

Time Frame

    Interest rates for retail store cards are typically higher than a Visa, MasterCard or other major credit card. When selecting a retail store card, consider the interest rate and the grace period that allows you to pay off a balance interest free. Measuring these items can save money in the long run.

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