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what is a store credit

These five store credit cards are actually worth it.

Shoppers who are in a hurry to pay for goods and move on may find it frustrating to be constantly asked to apply for a store credit card.

In some cases, store credit cards are not a good deal. Sure, you might get a small discount off of your first purchase after being approved, but you often end up with a card that has inferior rewards and a higher interest rate compared to conventional credit cards. However, these cards are some of the easiest credit cards to get, which make them attractive if you're trying to build or rebuild credit.

Fortunately, there are some store cards that do make sense. These are the cards that can offer impressive discounts, competitive rewards, or both.

This card offers no rewards and little in the way of discounts (just five cents per gallon off of gasoline purchases). Yet this card is great for those who are trying to build or rebuild their credit, as it is one of the easiest store charge cards to be approved for. Cardholders receive a free monthly FICO score when they opt to receive electronic statements online. Another valuable feature is the ability to withdraw up to $100 cash at stores each

day when making a purchase. Unlike most credit card cash advances, these cash withdrawals only count as a purchase, so they have no fees and no interest charges if the statement balance is paid in full by the due date. There is no annual fee for this card.

In order to get the most out of the discounts and rewards that come with these cards, it's ideal to charge only what you can pay in full each month and avoid the interest charges. Paying in full, or keeping the balance to 10 percent or less of your credit limit will also benefit your credit score. If you do carry a balance, it's good to have a plan to pay it off, and this calculator can help you determine how long it will take.

Note: It's important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

Any opinions expressed in this column are solely those of the author.

Category: Credit

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