Should You Get a Store Credit Card on Black Friday?

In some stores, they can get you a nice discount and out of lines quicker. But they can have bigger implications for your credit.

Should You Get a Store Credit Card on Black Friday? Photo (cc) by stevendepolo

Maybe, but only if you’ve done your homework. LowCards.com:

Store credit cards generally have much higher interest rates, since the stores have to pay for that discount in some way. Even if you plan to pay off the purchase immediately, there are two concerns:

Store credit cards typically have low credit limits. So just making a few purchases can max out your credit limit or give you a high debt:credit ratio which can further harm your credit profile.

When you open numerous store cards, it can become difficult to keep track of all the different due dates and terms of each card; this may cause someone to miss payments and do further damage to their credit score.

There may be times when it pays to open a store credit card account–if it is a store where you shop regularly or you are making an extremely large purchase.

Just applying can affect your credit score, too. Weigh the short term benefits of a discount against the long-term effect on your credit, and don’t be pressured into signing up.

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