Photo by http://abduzeedo.com/29-great-free-texturesMost of us have done it. We take up the offer to open a new store credit card to save 10% off of the purchase we just made. I know I am guilty of it especially if I am buying a new computer or a lot of furniture. Anytime there is a big ticket item you can save a lot of money by taking up the 10% off your bill if you open a credit card.
You will find out you really are not saving money. If you keep opening up these credit cards you will find yourself paying more monthly if you cannot pay off each month’s bill. When you open a credit card that gives you a one time only 10% off your purchase, you are most likely paying a higher price on interest rate. The average rate for these types of credit cards is 21% or higher. The store makes up the money you “saved” pretty darn quick.
Or maybe you know you want to save money by opening up one of these credit cards so you try to find the products that you want to buy or think you need to buy and spend $500. Add 21%+ to that and you are in the hole.
Another reason you should not open anymore store credit cards is that the more store credit cards you have to the limit --the worse your credit rating will be. No one wants a bad credit rating or you will not be able to get loans for a home, car, etc. If you do get a loan on a home or car, you will be paying more since you have a bad credit rating.
Insurance companies will look at your credit rating and if it is not good you will pay more for insurance.
When applying for a new job it is pretty much a given that the potential employer will check your credit history. You may not get the job you really wanted or needed due to your credit history.
This holiday season stay away from stores offering you to save 10% off of a one time purchase if you open a credit card as it paints a dire picture.
For more information on why not to open anymore store credit cards, please visit: http://www.preparednessmentor.com/.
You will find out you really are not saving money. If you keep opening up these credit cards you will find yourself paying more monthly if you cannot pay off each month’s bill. When you open a credit card that gives you a one time only 10% off your purchase, you are most likely paying a higher price on interest rate. The average rate for these types of credit cards is 21% or higher. The store makes up the money you “saved” pretty darn quick.
Or maybe you know you want to save money by opening up one of these credit cards so you try to find the products that you want to buy or think you need to buy and spend $500. Add 21%+ to that and you are in the hole.
Another reason you should not open anymore store credit cards is that the more store credit cards you have to the limit --the worse your credit rating will be. No one wants a bad credit rating or you will not be able to get loans for a home, car, etc. If you do get a loan on a home or car, you will be paying more since you have a bad credit rating.
Insurance companies will look at your credit rating and if it is not good you will pay more for insurance.
When applying for a new job it is pretty much a given that the potential employer will check your credit history. You may not get the job you really wanted or needed due to your credit history.
This holiday season stay away from stores offering you to save 10% off of a one time purchase if you open a credit card as it paints a dire picture.
For more information on why not to open anymore store credit cards, please visit: http://www.preparednessmentor.com/.
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