Comments on Is it a good idea to open credit card accounts for as many department stores as possible? »
June 18, 2008
cmatthaios @ 2:36 pm
its a catch to save an extra 10% off your puraches, but are u really saving when it comes down to the interest payments??
I would compare that first. Perhaps you would actually save more eventually by a lower APR…
Opening several credit accounts with different stores is not a good idea as it may lead to over spending and that would not be good for your Credit Score. All the stores will check your Credit Score and multiple inquires about your Credit is not good.
Please consider that most department stores credit offerings are at a higher annual percentage rate than you would obtain by shopping rates for a Visa or MasterCard. I suggest that you be very selective - your credit rating is important; if you start making a lot of requests for credit suddenly, it can have as detrimental effect on your rating relative to risk as being late in payment can. You are wise to think of annual fees, but also ask questions about other fees (late fees, overlimit fees, etc.). Again, be very selective and don’t throw risk to the wind.
If you “pay off everything as soon as you buy it (right then and there)” then the interest and APR would not apply.
However, department store cards usually have low credit limits. Having a low average credit limit per account may hurt your credit score. Having a small number of major credit cards (Visa, Mastercard, Amex, Discover, etc.), with higher credit limits per card is better.
No it’s not a good idea. Carry the cards of the stores you shop at the most and offer the best discounts for being a card holder. Too many credit cards will lower your credit score. It will cost you more money later because if your score lowers you will pay higher interest on a mortgage, personal loans, and car loans.
Not really a good idea. This will place a lot of “hard inquiries” on your credit report which lowers your score. they stay on your credit report for 2 years.
You are better off using a lower APR credit card and pay it off every month, this builds your credit score and you won’t pay interest as long as you don’t carry a balance for over 30 days.
That 10% discount may look nice, but it’s just to hook you into getting one of their cards, wait for a sale and pay cash, you will be better off in the long run.
Comments on Is it a good idea to open credit card accounts for as many department stores as possible? »
its a catch to save an extra 10% off your puraches, but are u really saving when it comes down to the interest payments??
I would compare that first. Perhaps you would actually save more eventually by a lower APR…
Opening several credit accounts with different stores is not a good idea as it may lead to over spending and that would not be good for your Credit Score. All the stores will check your Credit Score and multiple inquires about your Credit is not good.
Please consider that most department stores credit offerings are at a higher annual percentage rate than you would obtain by shopping rates for a Visa or MasterCard. I suggest that you be very selective - your credit rating is important; if you start making a lot of requests for credit suddenly, it can have as detrimental effect on your rating relative to risk as being late in payment can. You are wise to think of annual fees, but also ask questions about other fees (late fees, overlimit fees, etc.). Again, be very selective and don’t throw risk to the wind.
If you “pay off everything as soon as you buy it (right then and there)” then the interest and APR would not apply.
However, department store cards usually have low credit limits. Having a low average credit limit per account may hurt your credit score. Having a small number of major credit cards (Visa, Mastercard, Amex, Discover, etc.), with higher credit limits per card is better.
No it’s not a good idea. Carry the cards of the stores you shop at the most and offer the best discounts for being a card holder. Too many credit cards will lower your credit score. It will cost you more money later because if your score lowers you will pay higher interest on a mortgage, personal loans, and car loans.
Not really a good idea. This will place a lot of “hard inquiries” on your credit report which lowers your score. they stay on your credit report for 2 years.
You are better off using a lower APR credit card and pay it off every month, this builds your credit score and you won’t pay interest as long as you don’t carry a balance for over 30 days.
That 10% discount may look nice, but it’s just to hook you into getting one of their cards, wait for a sale and pay cash, you will be better off in the long run.
Hope this answers your question