Those Store Credit Cards with all the promises

[QuiltAngel]

A pet peeve of mine is those store credit cards where they really try to twist your arm to get one of their cards. You know the ones, where they promise a percentage off of the purchase to get their card. They reallly make money on them as their interest rates are high as are their other fees. Why don't the stores just lower prices about 10% and not badger us with their store cards? I know, I already answered that, those fees they charge are money makers.

Just wondering what others thought of these.

[YellowRoseTex]

I've signed up a few times to get the discount. However, I pay off the balance as soon as the bill comes in and than never use the card again. By signing up I also get special mailings once in awhile with some coupons. I love coupons! :hi5:

As long as you use it wisely, paying the balance off when the bill comes in, I think it's okay to do once in awhile. But if you are not going to pay off the balance, than it's definetly not worth it because you will pay more in interest than what your savings was.

[Carmen]

I have never wanted to fiddle around with store credit cards, when it's easier to use just one major credit card (like Visa, Mastercard or AmEx) for purchases. Why carry around all these different cards with you? If your purse was lost or stolen, it's all the more you would have to worry about cancelling, etc.

A few times, when I have been at the cash register, making a fairly large purchase, and the cashier asks me, "Would you like to save 10% on your purchase today, by opening a charge account with us?" I reply, "Yes." It just takes a moment to apply and be approved, I save a little money, and I am on my merry way. When the store credit card arrives in the mail a week later, I cut it up and toss it.

[wingriderprincess]

Oh my!! My huband loves those cards! He signs up for all of them and then tears up the card when we get it. I hate the hassle of filling them out so I never do them. :)

[QuiltAngel]

I have done that also when I am making a large purchase. Sign up, then never use them after that. I prefer my VISA overall. Just one card to worry about. I just don't like the high pressure some of them use.

I do like the specials one particular store offers that I signed up for. They are good for that!

[mezzo soprano]

A few times I've been tempted to do that too... but then you have to fill out the application right there, your purchase gets held up.... you know the drill.

I have ONE credit card I pay off every month. But we have two more in reserve in case we get in a bind. :)

[Kate]

My peeve is that when I'm at, let's say, Target, and I spend $5.00 or so, they ask me if I want to say 10% off my purchase. Why would I want to save $.50? It's worth it if I'm spending a lot of money. Some days they are walking around the store with applications. So I get hit from those that walk around and then get hit again at the register. It drives me crazy. :)

[clogaholic]

I used to apply for and use the store cards. Then one day, I counted the credit cards in my purse - I had 18! Can you imagine the mess I'd have if they were lost or stolen? UGH!! I cut up all but Master Card, my Penneys card ( they have great sales) and 1 gas card. My DH also uses AM EX.

[txgurl]

I had a mess going on just recently. We use Discover, and we already had an account with them, and they sent us another card recently. I didn't really pay attention to the acct. number, thinking it was the same, and we were just activating it because the card had expired. Well, guess what? It was a new account? What do I need another Discover for? Luckily I had not used it yet when I discovered this new account card from them. We quickly called them and asked them why they sent this. Well, it seems we had this one from way back and nothing was on it, and they thought we could use it for some kind of discount by having two. They are very sneaky.

Please be careful with this, always look and compare the acct. no, and the name on it. I was suspicious of this because it had my first name on it(never use it) and I go by my second name and the number was different(last four digits).

[Kathy]

One thing I discovered is that if you apply for a credit card (which is what those stores are asking of us) it opens up an inquiry on your credit report. Too many inquiries can dock your credit rating somehow.

Although I rarely get store credit cards, I was shopping and purchasing some clothes for a favorite daughter of mine several years ago. She was headed for a job interview (I think!) They offered a 20% off discount with a new store credit card and this was a substantial savings. So I said sure!

We had just applied for our mortgage to be refinanced. I had also traded in my car for a new one....and apparently I had taxed my credit report for inquiries too much within a week's time.

I have no idea how it matters (maybe someone from the banking or credit reporting companies can explain) but my application was turned down. I was never so embarassed in my life...as I have a great credit rating.

:bliss:

The clothes were purchased anyway (without the savings) but I left a bit embarassed at that episode.

Now when I'm asked if I want a store credit card I say...no. :silly:

[DayDreamer]

Kathy,

That's a good point. Everytime you apply for credit, a credit report is pulled and there is a list on the report from the companies that pulled it. One of my banking jobs was pulling and looking at credit reports for consumer loans...most frequently auto and there would be a handy dandy list of recent inquiries for credit. It was helpful to see which other financial institutions and local banks had declined a particuliar application. ;)

[blondgrl]

I've never gotten a store credit card. I just kind of feel pressured when the sales person tells me that if I get their credit card, you'll get a great discount, etc. Makes me wonder why I couldn't get that discount anyhow?!! So, I'm one who looks at the bottom line & I don't feel comfortable signing up for something that I'm not sure about.

[Luvmabug]

I know it sounds awful tempting to get an additional savings if you apply for a store credit card. My problem is, I'd end up not paying the balance by the due date, and end up paying a lot more than if I'd payed cash for it in the first place. When I'm approached with the question by the sales clerk, I just smile and say, "no thank you".

[Weiser]

I only have a couple store cards for all the reasons mentioned above--hits to credit report, carrying too many cards is a pain, high interest if you don't pay in full (I do on store cards for sure!), and I like using my "real" credit card. But I have Mervyn's, Kohl's, and JCPenny's because I do buy clothes there (esp on clearance!) and they often give me an extra 10% or 15% off if I use my card. Then I pay it off, so they don't make any "extra" money on me! :D

[QuiltAngel]

I don't know about all the stores but I know that Kohl's you can charge it to get the discount and then write the check to pay for it all at the same time. At least ours does that.

Then I ask myself again, why don't they just drop the price and drop the games. I know they are counting on many of the customers that don't have the card so they don't get the discount.
That is my pet peeve

[royallady]

I refuse to have a credit card. When I was married my husband had quite a few and when we divorced thank god they were all in his name because the amount owing was huge. I have personally never had one and do not think i ever will. I just cannot aford it.

[danigirl]

The thing is alot of people use credit cards with the intent on taking their time to pay them off. Logically, if you pay off your balance at the end of the month we get the benefits of the % off. But if you don't pay your balance... then you just get a HIGH interest rate.

[jen1422]

With the store credit cards, when they ask you to apply just say "I already have one, thanks". Even if you dont, that makes them leave you alone and its quicker than letting them try to hassle you into getting one.

I actually have several store cards that I never use. I wonder if I should close the accounts or just leave them open and not use them?

[Seashell]

I have just two store credit cards. One I got to get a discount on my purchase at the time. I do shop there, so....

The other -- I feel lucky to live near a Von Maur store. Men's, women's, children's clothing and shoes and a small gift department. They're based in Des Moines, Iowa. There aren't too many throughout the country. They have store credit cards -- INTEREST FREE! There is a monthly minimum payment, but the balance you carry is interest free. If you buy something over $300, you can buy it on contract -- ten equal payments interest free. Gift wrapping is free. Shipping is free. Great customer service. I love Von Maur.

[Mykhal Jaems]

I always smile and tell the sales person, "You really don't want to give me that I have bad credit." That's all it takes.

Oh and that works for telemarketers too. They hang up pretty quick.

Due to a number of reasons DH & I have very bad credit. We are working on it and with the help of the local home town bank and my parent (they've been customers there 35 years, have all of thier loans and accounts thru them) have gotten a loan to pay off a bunch of our credit cards and other debt.

I did apply for a credit card today. It has a small credit limit, but I'm not really planning to use it for anything. Just $10 a month or so and pay it off. We need to start somewhere this card seems to be interested in giving us a second chance. Granted the % isnt good and there is a yearly fee and a monthly fee if you have a balance due, but it's a start.

MJ