The Interest for Retail Credit Cards, To Grow as Black Friday Gets Closer

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As talked previously, retail credit cards are far from being the best options when it comes to shopping. Still, for those who like to buy things frequently, a good discount is something pretty hard to avoid. And what time of the year has the most discounts? Exactly, this time, when Black Friday is just around the corner!

No need to wait for that special day, loaded with discounts!

However, they won’t have to wait a whole year for a period full of bargains, like the previously-mentioned Black Friday or Cyber Monday, since a couple of stores are working on something.

Specifically, stores like Macy’s or Nordstrom already started offering deals year-round, in order to ‘fight’ against the increased interest for retail cards before Black Friday.

Basically, by this they’re attracting customers through retail cards, alongside the classic rewards credit cards and other loyalty programs. As a side note, 1.51% of customers have a retail card, according to exact analysis.

However, while this entire offer can be very tempting, as tons of these store cards offering percentage-off discounts at sign-up, it’s not always the best idea to opt for one.

Some APRs can be ridiculously big for retail cards!

On the average retail card, the interest rates have risen for the third straight year to 24.99%, compared to the average general-use credit card APR, currently at 16.5%.

“When you sign up for a store credit card, you’re also signing up for frequent nudges to buy, buy, buy, which means you’re often spending more than you would normally,” says financial planner Sophia Bera.

In a nutshell, no matter how loyal you are to a brand, it can seriously cost you if you don’t pay off your balance in full. As a matter of fact, the average retail cardholder has a balance of $1,081, according to Experian.

Right now, the retailers with some very tempting offers, but very high interest rates on their cards are Big Lots, Brand Sources, Zales and Piercing Pagoda. All of them offer APRs near 30%, the maximum allowed. If you ask us, it’s highly recommended to stay away from their retail credit cards, and buy using cash or your regular card.

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