Money Tips: Pros and Cons of Store Credit Cards

Posted On: March 8, 2006

Guest: Audryssitter
Post subject: Pros and Cons of Store Credit Cards
Posted: Wed Mar 08, 2006 9:19 am

Editorial by Gina Spring, Managing Editor- The Arkansas Traveler

http://www.thetraveleronline.com/media/paper688/news/2006/03/08/Opinion/Beware.The.Store.Credit.Card-1658500.shtml?norewrite&sourcedomain=www.thetraveleronline.com&mkey=1456955
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Guest: Board Monitor
Board Monitor/ Administrator
Posted: Wed Mar 08, 2006 10:00 am

Thanks for posting. We’ve been preaching this for years.
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Curtis Arnold
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http://www.cardratings.com
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 08, 2006 12:25 pm

The argument of the article is that if you have more credit, you’ll spend more than you can afford to pay back and thus get into severe financial trouble.

So it concludes that you should turn down a 20% discount or whatever other enticement is offered to get you to sign up for such a card.

And that’s ridiculous. The conclusion should be–sure, take advantage of the discount. But don’t buy anything just to get a discount.

I figure if you’re at the checkout counter ready to pay the full price for what you have, and someone offers you the 20% discount to get a store card, get the store card. It’s real simple. Would you rather save the 20% or not?

What you do after you get the card is the same problem EVERYONE has with the cards that they do have. And, fact is, latest studies show that bankruptcies are NOT caused by overspending on credit cards. They’re caused by illness and job loss and deaths.

I hate seeing adults treated like chidlren in these articles, which always assume credit users are out-of-control spendthrifts who should have their parents or attorneys or caregivers control their finances. Sigh.
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Polonius
“Neither a borrower, nor a lender be; For loan oft loses both itself and friend”

Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 08, 2006 12:47 pm

What a ridiculous article!

Sorry, but I disagree with the author completely. My theory is if they’re giving, I’m taking. I have opened a number of store credit cards over the years to take advantage of the initial 10% or 15% discount on today’s purchases. You’re never under any obligation to purchase more than you intended to. If you do so, shame on you, not on the store. Also, you often get “unadvertised” special discounts as a result of having the store credit card.

A few personal examples: Marsha & I have never had any joint credit cards, in spite of being together for 15 years. We were buying a wedding gift for my nephew in Macy’s. We each have a Macy’s card. The sales clerk told us that if we opened a joint account we could save 15%. That amounted to a $30.00 saving on a $200.00 item. Clever, where do we sign? We’ve never used the account for anything else and have no intention of doing so.

I have a store card at the Bon Ton Department stores. I don’t think they’re anywhere except Pennsylvania. Last year we saw exactly the living room tables we had been looking for. Price was around $1,000.00. The store card entitled us to an extra 10% discount. Take the money & run!

With regard to paying by phone, almost all cards charge a fee for doing so. I have no sympathy for the author in this regard either. It has nothing to do with the card being a store card.

It’s the same old story I constantly preach: responsible use of credit and take advantage of every angle you can find.
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Do not let what you cannot do interfere with what you can do.

Ira