Post # 1
So I’m looking into making a big-ish purchase, and the store I’m buying from (Best Buy) has a credit card. Of course it does, all stores do! There are some nice benefits to the card, and since my “general” cards don’t have rewards (and thus are only used for stuff a debit card can’t cover), any reward offer sounds nice to me.
And I’ve been looking into it and looking into it, and I’ve found some negatives:
1) The interest fee is high.
2) It gives a temporary hit to your score.
So I wonder… If those are the only two drawbacks, why should I not sign up? I have literally never been late on a payment. I do have one store card already (Kohls!) that I pay off the day of for purchases, so I would do something similar. As for the temporary hit, I don’t know my exact score this second, but I know it’s relatively high, and I don’t plan on buying a house in the forseeable future. From what I understand, the hit is pretty small anyways- usually less than 5 points.
Of course, knowing me I’ll chicken out last second, because God forbid I hurt my score by a single point for a month, haha.
But I was wondering… How do the Bees feel about store credit cards? Do you have them? What kinds? Why do you like them/dislike them?
Post # 3
@Apple_Blossom: Like cards that can only be used at that particular store? No where else? Zero.
I have an Amazon Visa, but I can use it anywhere. It’s my 3rd CC that I rarely use though.
Post # 4
As a rule, I avoid them because I get cash back with my visa.
DH did, however, open a Target credit card to save a significant percentage on a large purchase. We discussed doing this when we were getting all of our baby stuff, and then we paid the card off with my cash back visa. Win-win!
Post # 5
@sienna76: Eh, it was kind of open to interpretation. I guess I meant cards that are “logo-ed” with a company that isn’t primarily a credit card company- so Target, Kohls, BP… I’d count Amazon in with that.
I’m actually looking at the Amazon card as well, though that might be something I try later down the road, since I don’t have any purchases I want to make there at this time.
Post # 6
- Wedding: March 2013 - Callanwolde Fine Arts Center
Every time I’ve needed to make a big purchase a Best Buy (a TV, Washer/Dryer, Fridge) they have been running a “no interest for 2 years” special. So I use my Best Buy card that I got specifically for a big purchase and pay for it with that. I have enough money to pay for the purchase out right, but now I don’t have to. I spread the cost of the big purchase over 18 months and I don’t have to pay any interest.
Plus, since I pay the bill on time, it just adds to my good credit score.
Post # 7
@Apple_Blossom: I have one, and I really didn’t want to get it but it was beneficial to us at the time.
It’s for The Brick, a furniture store. By putting our couch purchase on it, we could take advantage of 0% over 6 months rather than pay cash and lose out on the cash flow, or put it on my regular credit card.
I’ve only used it for that one purchase though.
Post # 8
@Apple_Blossom: Ah! I had an American Eagle card like 10 years ago, and I was under the impression that I could not use it anywhere else.
I like any kind of card that has a) no annual fee, and b) doesn’t require to spend your rewards on more stuff.
So I use the AMEX Blue Cash. Any rewards I get, I turn it into cash – which essentially is just a credit to my bill. 5% on most things, 1.5% on all else.
I don’t want to have to buy more stuff or can only be redeemed at that store. I could redeem my rewards and get physical items with my AMEX Blue Cash, but I bypass all that and go straight for the credit/cash.
Post # 9
@Apple_Blossom: I have one, for Sears, we got it when we bought our new bed, I did it because we were waiting on some money to come in and we didn’t want to miss the sale, we got an extra discount for buying on the card PLUS you get points that get you money back to spend at sears.
The interest rate is atrocious (30%) so I ONLY use it when I know we’ll be able to pay the item off within the grace period but we’ve earned some great money back.
Post # 10
- Wedding: November 2013 - St. Augustine Beach, FL
@Apple_Blossom: If it’s worth it for your purchase, do it. But with a high interest rate, I would plan to pay it off immediately, or within a few months. I have the mindset that I don’t need an electronic item to survive so if I can’t afford to pay cash for it, then I don’t need it.
Post # 11
@Apple_Blossom: Kohls card!!! That’s because I get 30% off pretty much all the time with it, so it’s totally worth it. The temporary ding to your credti score is really minimal and it will go away soon. If you are not looking to do something big (buy a house or get a car loan) in the next few months, you should go for it. Especially if this is a store you will shop at often.
Post # 12
The only reason I get store cards (I have 2 Macys and BestBuy) is to take advantage of 0% for X month deals. You have to be very careful with these type of cards because as you noted they do carry a high interest fee. However, if you pay your balance off in full every month or whenever your 0% period is up it could be useful.
Post # 13
I have a Target card. It’s okay (gives you 5% off and free shipping on online purchases), but the limits SUCK. You typically only get $200-300 when you open it and then NEVER get an increase. They’ll tell you that they periodically review accounts for them, but I’ve had my card for almost four years and not had one, AND you can’t request them.
Post # 14
I do have a Kohl’s card now that I think about it. I hate to use it because I always forget that bill as it’s not set up with the others. I rarely use it, so it’s easily forgotten. However, if I have a coupon or something, they usually make me use that card to get the discount. I don’t like it.
Post # 15
I used to have a VS card (stupid choice). But the one card we both have now and love is the Target card. We pay it off every month so it doesn’t accru interest and we get the 5% which is nice since we do all our grocery shopping there.
Post # 16
I have a Macy’s card that I opened mainly to take advantage of the registry rewards program, but that is my only store card and I barely use it since I prefer to earn miles on my Venture card. The Amazon Visa was my primary card before I got the miles card. I love those Amazon rewards points! Since I pay my card(s) in full every month I don’t care about interest rates. I make it a rule to never pay to use my own money.