Despite all their flaws, store credit cards are not completely worthless. There are two times when it may make sense to apply for a store credit card.
The first is when applicants have average or below-average credit and cannot qualify for some of the more competitive offers. In this case, shoppers may find that store credit may be the first rung on a ladder to rebuild their credit.
The second is when a buyer is making a big purchase. For example, if you are remodeling your kitchen, you could easily spend $ 5,000 on cabinets and appliances at a hardware store. If that store offers only a 10 percent discount when you open a store credit card, then it is worth applying for the $ 500 savings.
Also, those who know that they will be frequent customers and big buyers at a particular store, such as those who make a lot of purchases for their business, may find that the rewards offered for in-store purchases are higher than they could receive from their Other cards. of credit. Either way, we are talking about purchases of thousands of dollars per year, not one-time Christmas purchases of a few hundred dollars.
You should only apply for the cards if you understand the terms and have the cash to pay the balance in full. If you do, you can take advantage of the discounts instead of the discounts taking advantage of you.