VIDEO: How Do You Feel About Store Credit Cards?

A new study finds that store credit cards are even worse than we thought — so we discuss if there are any benefits to them.

Are store credit cards the worst thing since un-sliced bread? You probably assume they are, while, at the same time, being mildly attracted to the "10% off now!!!" offers they dangle in front of you. A new report from reveals how truly terrible they are. On average, store-based credit cards hold a 23.23% APR. That means you'll get hit with a $23 interest fee for every $100 you put on the card!

In this brief — yet lively — video, our experts discuss if there are any benefits to signing up for a store credit card.

What about you, readers? Tell us what you think about retail store credit cards, in the comments below.

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Dan Leadbetter
DealNews Contributing Writer

Dan Leadbetter was a Staff and Features Writer for DealNews. He enjoys comedy, playing drums, watching horror films, fine cigars, and Absinthe.
DealNews may be compensated by companies mentioned in this article. Please note that, although prices sometimes fluctuate or expire unexpectedly, all products and deals mentioned in this feature were available at the lowest total price we could find at the time of publication (unless otherwise specified).


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Dano Da Mano
I have a couple of store creditcards for the discounts of course. Allways 5% off at Target, and at least 15% off at Kohls. The real money is to be MADE with regular cards though. I put everything I can on cards (specific cards for specific types of purchases), and pay off everything when the bill comes. I have averaged over $100 cash back per month for the over 2 years by playing the creditcard game. How much have I paid in interest? Not one cent!
No one mentioned the ongoing percent off incentive for store cards. For instance, my Amazon card gives me 3% on any Amazon purchase and my Lowe's card gives me 5% off there. My best cashback on other cards is only 1.5%, so these cards are paying me to use them. Of course, I always pay my statement balance in full, so I completely ignore the interest rate. Cashback rewards are king.
Jeff Somogyi (DealNews)
@mrwintexas, @kmartin173, and @rampo
You are all, of course, correct: There are ways to make it work in your favor ... IF you are a diligent and smart consumer (like all DealNews readers are!)
There's something to the fact, though, that if you're impulsive enough to sign up for a store credit card right on the spot, you might not be thinking about long-term financial strategies.
As the other comments have pointed out, if you pay it off the card in full each month it doesn't matter if the interest rate is 6.99% or 23.99%. The few store cards I have were usually the result of some special promotion or immediate savings, and after being used for that purpose were then put in the drawer where they stay until the store tires of keeping me on their rolls or, more often, goes out of business. Some like Best Buy also allow you to spread out payments for larger ticket items over a few months with no interest.
I have a few store cards but I use them exclusively for interest-free promotions or percentage discounts that they sometimes offer. I rarely make a regular purchase on one
If you pay in full each month on time there is no interest. I really don't see what the problem is. Don't buy stuff you can't afford gentlemen! I use store cards for the discounts. And I always pay my bills. ALL credit cards charge ridiculously high interest rates. Plastic makes sense ONLY if you pay in full each month - they offer convenience, cash back, and a month's float.