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If you are shopping in a store and they ask you if you would like to open a CC what makes you say yes? What are the reasons that you would like to open this credit card....would the fact that I can save you 40% on an initial purchase help?
The only one I opened is at Lowes and Macys so I can get the percentage off on the initial purchase. I then paid off the balance without incurring any interest. I haven't used the cards since. I think Macy closed me out because of inactivity.
Depends. If the only purchases I make at a store are under $100, even a big discount on the initial purchase wouldn't be enough, since I don't like having lots of cards. We did open a Best Buy account, since they offered interest free financing for some time period (18 months I think), as well as triple points for purchases paid for on a card, and we were making a large purchase. Paid it off in about 3 months and bought a 2nd tv with the points. We could have just paid cash, but the interest free plus the points were too good to pass up.
If a card offered a large discount every time I purchased with it, that MIGHT be enough to get me to sign up, but it would have to be like 25% off every purchase. Or a big discount off the initial purchase (like the 40% you said) might be enough if I was making a big purchase, like $200 or more.
Like oneasterisk, I too have had company cards closed for inactivity. With no notice, which was annoying. Actually, thinking about it, Best Buy is the only active store card I have right now.
Like oneasterisk, I too have had company cards closed for inactivity. With no notice, which was annoying. Actually, thinking about it, Best Buy is the only active store card I have right now.
I forgot I too have a Bestbuy card for the same reason. I can afford the big ticket purchases, but it's nice being able to pay monthly same as cash. Also BB once closed my card because of inactivity. When I went to purchase something, they had me fill out another app and gave me approval on the spot.
I only get them via big offers. i.e I have a home depot card from when I got my kitchen redone (spent 5k on countertops and stuff with 0% and 3 year payment deal).
The caveat here is that if you don't pay it all off within that time period, they'll tack on all the interest accrued from the original balance. In addition, store credit cards tend to have lower limits, so your credit to debt ratio tend to be higher (especially if you take advantage of these deals, and they'll set the limit to the purchasing price).
And yea - your card getting closed out for inactivity.
I opened a couple waaaay back in my early 20s when I was attempting to build a credit history. I bought 1 or 2 things at each store, paid them off promptly, let them sit for several years, then closed them out when I felt I'd built up enough credit elsewhere.
I opened a JCPenney CC, tried to save some money on a purchase. When it came time to pay for my car insurance, the rates went up, their excuse was probably was my credit score, it probably was. At the end, I didn't actually save anything. Lesson learned, I have excellent credit. No debt of any kind.
We have a few store CCs. Best Buy was for no interest financing for 3 years on a big purchase. I pay pay $100 a month interest free instead of everything at once. Actually, we never buy anything at Best Buy immediately, it is always at no-interest financing. Just have a plan to pay it back and have the money set aside to pay it off in full at any time.
My wife also has a couple of other cards at stores she shops at more ferquently. Initially for a discount, then now because we get deals in the mail from them for future discounts. She keeps these in her purse in case she happens to be shopping at these stores. I dont think it causes us to spend more at the stores, just save when we would be at these stores.
I do not like to open ANY store specific credit card accounts. In the first place, every time you do, it is a hit against your beacon score on your credit report. You should only have two or three major credit cards, and that is all you need... you do not need more. You should also pay off the balance of your statement every time it comes in the mail, never carry a balance.
We use credit cards instead of cash, we do not carry cash. It also stops us from buying something that we know we will not be able to pay off when the bill comes in the mail. If we need a major purchase, then we save for it, then buy it.
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