Limited usability, limited services. On top of potentially hurting your credit scores, retail cards have usability issues. They're good only at one store or retail chain, usually have high interest rates and typically have less robust security alerts than traditional cards. (Store-branded credit cards are different.)
Because of the typically high interest rates, store cards have the potential to be even more dangerous than traditional credit cards when you carry a balance. But you can avoid paying interest by paying off your balance on time and in full every month.
The pros of store credit cards
Pay off all or as much of the balance as you can every month to avoid interest charges. It's also important to always pay on time. Another benefit of store cards is that many reward shoppers for their loyalty.
Con #1: High interest rates.
While store credit cards can give you a number of discounts, they are also notorious for their high interest rates. The rates on a store credit card tend to be much higher than those associated with traditional credit cards. If you aren't careful, you could end up paying a lot of interest.
Store credit cards can either help or hurt your credit depending on your credit history, credit score and how you use the card. ... Be cautious about closing your retail card, however, as closing it will reduce your total credit limit and possibly increase your credit utilization ratio.
Although it goes against general credit advice, in certain circumstances closing a credit card account is necessary. A credit card can be canceled without harming your credit score—paying off your balances first is key. Closing a credit card will not impact your credit history, which factors into your score.
The easiest department store credit card to get approved for is the Fingerhut Credit Account, but that's only if you count an online retailer / mail catalog as a department store. It's the only store card you can get with bad credit.
You should never use the credit card to buy something you cannot afford. This is the mindset that leads to debt. Unnecessary luxury goods may seem "attainable" when you have a credit card, but this actually undermines your financial health. Don't buy anything you can't afford to pay off in time.
In general, it's best to keep unused credit cards open so that you benefit from a longer average credit history and a larger amount of available credit. Credit scoring models reward you for having long-standing credit accounts, and for using only a small portion of your credit limit.
Even if you have bad credit, there are a number of ways to get the furniture you need without breaking the bank.
Best “Department Store” Credit Cards for Bad Credit
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