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Store Credit Cards and Your Credit Score

Savvy ATM: Store Credit Cards and Your Credit Score


Sixty percent of you admitted that you have current store-specific credit cards in your wallets, and most acknowledged initially signing up for the introductory discount. Deals can be difficult to pass up, but it's crucial to consider the elements of a store card before you agree to one in your name.

Besides the bait of receiving a discount off your initial purchase and other card-holder benefits along the way, store credit cards work just like any other credit card. They likely come with interest rates higher than your usual card and are factored into your credit score just as any other card. But what if you fill out a credit card application to get the discount but never actually use the card? Find out how this affects you when you read more.

When you apply for a store credit card the credit card issuer pulls your credit reports, and hard inquires like this can negatively affect your score for a temporary period. Some shoppers fall into the trap off signing over their personal information in exchange for a discount when they're spending a lot of money, like holiday shopping. Beware of these offers: Whenever they're presented to you carefully evaluate if completing the application will help more than harm you.

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