Are you making the right choice by opting for instant... - Limited/Bad/Fair Credit Questions


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Credit Card Applications » Questions » User Questions » Limited/Bad/Fair Credit » Are you making the right choice by opting for instant approval store credit cards?

Are you making the right choice by opting for instant approval store credit cards?

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Instant approval store credit cards are a temptation that is hard to resist. This gives an individual unlimited choice as well as freedom to shop, even when they are hard pressed for cash. However, it is always wise to check the advantages and disadvantages of owning a store credit card. They have tempting offers such as getting a 10% discount instantly on purchases. Moreover, one has to be careful and not get tempted with such offers. The first question that one must ask oneself, is the card needed. If the answer is “no” or even “maybe”, then it would be a good idea to chuck the card and just refuse it. Too many credit application enquiries that are made can create havoc with your credit scores and affect your rating badly. The credit score of the customer is lowered each time the person opts for a store card. The score goes down by at least 20 points. The credit enquiries are equally damaging when it is made frequently.

Having multiple store cards could be the worst thing that could happen to anyone. The general tendency with people is to shop, or use the card carelessly, as the purchasing power increases. This reckless spending is bound to get a person into trouble sooner or later. After racking up big balances, the person realizes that the interest is equally higher than the cards in the general category, such as Visa and MasterCard.

General credit cards have more value when compared to the store credit cards, as these cards such as MasterCard or Visa can be used with any retailer. Even if there is someone who purchases a store credit card but decides not to use it and only wishes to avail the 10% discount on the card, it is still a bad idea. Possessing these additional cards will make the customer look more risky to lenders. These additional credit lines will show up on the credit report, and this increases the risk for the lenders. The risk potential in turn, could cause other unwanted consequences. It could trigger the “universal default pricing” on all other card accounts. Even when there are no balances carried forward, or no late payments this could happen as issuers are at liberty to impose penalty default pricing for the most trivial reasons. Hence it is always better to stay away from store credit cards.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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