Money Talks News: Pros and cons of store credit cards

Money Talks News - While out on holiday shopping, there is little doubt you will see offers for store credit cards.

These cards offer a one-time discount, coupons and maybe rewards too. While tempting, there are pros and cons you will need to weigh before signing up.

Among the pros is saving money on purchases. Next, the card may give you flexibility if co-branded with a major company like Visa or American Express.

Also, if you use the card responsibly, you can help your credit score and credit history.

But there are also many cons.

First, these cards are meant to get you to spend money, sometimes money you do not even have. These cards also have very high interest rates so don't sign up if you can't pay it off.

The card may only be usable in that store and may have a very low spending limit.

Finally, if you apply too many credit cards, you can actually end up hurting your credit.

Make sure to weigh the pros and cons of getting a store credit card. Also remember to compare benefits.

For example, if an airline offers a free flight for a credit card and a store offers 15 percent off one day's shopping, you may want to take the flight.

For more information, head to Money Talks News and search "credit cards."

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