Debt Consolidation USA Explains Why Store Credit Cards May Or May Not Be a Good Idea

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Debt Consolidation USA publishes an article that provided consumers with reasons why they should or should not get store credit cards.

Debt Consolidation USA believe that these cards have both advantages and disadvantages.

An article published last February 22, 2014 in the Debt Consolidation USA website sought to provide consumers with reasons why store credit cards are a good or bad idea for them. The article titled “Store Credit Cards: 5 Reasons To Get And 5 Reasons To Avoid Them,” wished to help consumers make a smart choice when it comes to using these limited purpose cards.

The article mentioned that the use of these cards have grown over the years. It is used by retailers to encourage loyal clients and regular purchases. Debt Consolidation USA believe that these cards have both advantages and disadvantages. Consumers have to be made aware of these not just to help them decide if they should get it or not. The information provided by the debt relief company sought to educate consumers about the proper use of store credit cards as well.

In terms of the reasons why consumer have to get these cards, the article mentioned that it is usually offered with a high discount - at least for the initial purchase. The cardholder is also entitled to avail of regular discounts that are all under the discretion of the retailer. These store credit cards can also be given with rewards programs that will also encourage consumers to make more purchases. These rewards can be in the form of cash back rewards. Not only that, some retailers also offer free items. These credit cards can also be used to purchase expensive items that they can pay back in installment at zero interest.

In terms of the reasons not to get them, the article started with the high interest rates. These cards average at 24% while the regular cards are at 15%. Not only that, it is a limited purpose card - that means it can only be used on the retailer that issued the card. Since this is true, the tendency of the consumer will be to get store credit cards from a lot of stores. The multiple credit cards can lower the credit score of the consumer. There are also limited benefits and rewards that can be accessed - again because it is only limited to the retailer. The article also mentioned that this is usually an impulse application. Consumers are offered this card during checkout. It is offered with a high discount that can immediately be applied to the current purchase. That makes the compulsion to avail it to be quite high. But at the same time, consumers will not be able to think about it clearly.

With these information, Debt Consolidation USA hope that consumers will think carefully if they want to avail of these credit cards. To view the complete article and the reasons provided by the debt relief company, click on this link:

Debt Consolidation USA encourage consumers to view the hundreds of articles on their website to get more information about getting out of debt. They can also call 1(877)610-6990 to find out more about the different debt relief options.

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Adam Tijerina
since: 04/2012
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