Consumer Law

Don?t Carry a Balance on Store Charge Cards

By Sam Glover

Many retail stores constantly push you to sign up for a store card. They offer great discounts on your first purchase, and promise future discounts. They also charge interest rates of up to 29%, which means store charge cards are a terrible deal if you carry a balance.

But if you do pay off your balance every month, there are some great deals worth considering. Consumer Reports says Barnes & Noble, Gap, Banana Republic, Piperlime, Athleta, and Old Navy are worth a look. I’ve had a Macy’s charge card for years, because I often get extra discounts whenever the store puts on a sale.

Used responsibly, store charge cards can be a great deal. But at 29% interest, they can become a huge mistake very quickly. Pay them off every month, or cut them off and close your account.

(photo: adbusters.org)

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Full post as published by Caveat Emptor on January 05, 2011 (boomark / email).