29 Jul
2010

Most stores offer them – store credit cards that promise great rates, loyalty rewards, and all sorts of perks. Some customers have wallets full of credit cards from their favorite stores. While store cards can be handy and attractive, though, they can also get customers into trouble. Customers with multiple store cards are more likely to carry large debt loads – and those perks may not be as attractive once you read the fine print.

Most store cards do not offer better terms than traditional credit cards. Many offer great introductory programs, rates, and rewards, but when you read the fine print you can see that the long-term rates of these cards are far from great. Also, unlike traditional cards, most store cards are designed to be used in one store. When you travel or want to shop in a different store, you’re stuck – unless you get even more cards. Most experts agree that one credit card is more than enough for just about anyone. Any more than that, and you risk getting stuck with too much consumer debt.