Retail credit cards appear to be very popular lately, with a lot of stores offering them for their biggest clients. However, they’re far from being excellent financial products, considering the high APRs, the limited rewards, and the low credit limits.
But hey, if they’re still out there, it means that people like them for some reason. And if you’re planning to apply for a retail credit card, there are a few questions you should ask yourself first.
How often do you shop at the emittent store?
First of all, you should think if you are indeed shopping a lot at the store which offers the retail credit card. If you are a loyal customer, it totally makes sense to get the card, especially if it brings significant discounts or some attractive earning rates, among other benefits.
On the other hand, even if you shop frequently at the store, picking up the card might not be the best option. Instead, try looking for a general rewards card, that could get you the same rate at that store and many others.
Will a general credit card bring the same advantages?
Obviously, a lot of people will consider a general credit card before applying for a retail one, thinking it could be a better deal. And from some points of view, it is, especially if you’re shopping at the same place for specific items.
Our recommendation is to do a bit of research because in many situations you will come across general credit cards that give you similar – if not the same – advantages as the retail card, not to mention that you will have the liberty to use it in more than one place.
Therefore, the answer is “research”. Take a bit of time and see if the retail credit card you’re considering is left behind when it comes to advantages by a general card! A retail card is not necessarily a bad idea. But don’t say yes instantly when the cashier asks if you want to apply for one.