Department Store Credit Cards - The Good, The Bad, and The Downright Ugly!

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Oh yeah. We've all been there. It's Christmas time; money's tight; you need a great gift for that special someone. That's when they sneak up on you ... the department store credit card goons. They're so sweet. As you're checking out and you're standing there thinking, "Oh great. It's HOW much?" That's when they ever so sweetly say, "Would you like 15% off of your purchase today? All you have to do is open an account with us!" Smile. Smile. Smile. So how can you resist? You go for it. But is this good? What are the consequences going to be down the road? This article will set you straight on The Good, The Bad, and The Downright Ugly side of department store credit cards.

The Good

• Okay, say you are in a financial pinch and you really do need to get the item you are buying. Saving an extra 10% to 20% can be great and it's okay to take advantage of this IF you make sure you pay it off as soon as possible. Do not let the charge sit on the credit card because it will be racking up a hefty interest rate.
• If you combine the credit card with a killer sale, you can make out like a bandit - just pay it off quickly.
• If you have bad credit, you can often get a department store credit card when you can not get any others. This can work to your advantage and you can use the card to rebuild your credit if you will only charge small amounts, pay it off each month, or pay it off early.

The Bad

• Temptation - Once you have that credit card in your possession, it's just sitting there telling you, "It's okay. Go ahead and buy it. You can afford it!" Do not listen. Just because you have the card does not mean you can buy whatever you feel like. Exert willpower or the temptation will get the best of you.

The Downright Ugly

• High Interest Rates - Department store credit cards have the highest interest rates around. So unless you pay of the charge before the end of the billing cycle, whatever you saved when you signed up, just got eaten up. The items that you put on one of these cards will cost you a whole lot more in the long run.
• They reproduce like rabbits - before you know it, you've accepted a whole boatload of these "helpful" little credit cards. Now the interest is piling up so high, you can not shovel your way out.

Do you see what I mean about department store credit cards? They can have their good points, but you also have to be wary of their "ugly" side too. Now that you know this, you can use these cards to your advantage instead of them taking advantage of you.

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Source by Debra Proctor