Since you’ve been doing a lot of shopping in stores for the holidays, I can almost guarantee one thing:

You’ve probably been offered an in-store credit card. 

According to a recent CreditCards.com survey, almost 66% of folks offered one of these credit cards impulsively agreed to apply for one. 

But was this really the best financial move over the long run? And, are in-store credit cards really as evil as the rumors say?

Let’s look at the pros and cons.

On the plus side, store cards give you discounts if you shop there – and the general rule is the more you spend there, the more the price gets slashed. And, of course, you get access to money that you might not have had previously.

But, that right there leads to the biggest con of store credit cards.

Going into debt over an impulse purchase is one of the worst choices you can make financially. 

A few other points:

• High interest rates – typically much higher than a standard card. That discount you were promised won’t offset what you’ll pay in interest if you don’t pay the balance in full. 
• Your credit rating will suffer. Every time you apply for a new credit product, it harms your score.
• Be prepared for spam. By signing up for their card, you’re on their mailing list now, and this information may get sold to third parties for other purposes.

But there are ways you can take advantage while avoiding the pitfalls.

• Pay the balance in full immediately. 
• Set up payment reminders to ensure you don’t miss a payment.
• Read the terms carefully before signing – and watch for annual fees and the interest rate.
• Only consider in-store cards for retailers that you regularly visit so you can reap the rewards after the holidays are over. 

Credit cards aren’t the only way I can help you avoid financial mistakes. I take a holistic approach to money; such as retirement, tax, and estate planning. 

If you’d like to talk about what an advisor like me can do for you, get in touch with my office by calling 513-563-PLAN (7526) or booking a quick chat here.