Should You Open That Store Charge Card?
I just picked out a bunch of clothes for my husband and headed to the checkout. We were heading out on a weekend away and he needed a few things for a wedding. He wasn’t there to try things on, so I had to guess. I knew I may take back a few things. The total came to $220 and the cashier said the magic words, “Today only, save 40% on your purchase by opening a charge card!” I said no two times, but she was good at her pitch. With the promise of additional coupons, I actually said yes. After all, we did have a couple other trips coming up and knew he would “need” some new things soon enough. Sound familiar?
Should You Open That Store Charge Card?
Well this really depends. It is tempting, nonetheless. The real question you should ask yourself is how responsible you are with credit. If you are someone who charges small amount and pays them off monthly, than maybe it will work for you. It is important to be honest with yourself when it comes to your financial habits.
Pros For Opening A Store Charge Card
- Possible discount off your initial order
- Promise of future coupons for things you need or are interested in
- Time to save up and budget and pay off things you need before you charge more
- Build your credit for future purposes such as a car loan or mortgage
Cons For Opening A Store Charge Card
- Debt can be overwhelming
- It is easy to veer away from the payoff plan and stay in debt longer
- Their will be an inquiry on your credit report from the store checking your credit (which may not matter, but could technically effect your credit score)
- Opens you up for possible fraud from the credit or banking institution that services the store charge card
At the end of that day, you have to decide whether this is a responsible decision for you and/or your family. Above all else, make sure you manage all of your credit cards and debts according to your agreements and as you know you should.
