Reasons Why Opening A Store Credit Card Is A Good Idea
Many shoppers do not get online store credit cards guaranteed approval for valid reasons. They generally do not feel secure holding card accounts. Still, many see it as beneficial and apply to avail of the discounts and perks. Which decision is right? It always depends on the user. There are disadvantages to owning a store credit. Not applying for one could be much safer. However, the advantages are also worth looking into. What are the reasons why opening a store credit card is a good idea?
Guaranteed Approval Store Credit Cards This is not to say that the advantages outweigh the disadvantages. Still, it is good to take note of the benefits. 1. Guaranteed approval. This is the best reason to consider store credit cards. The private-label retail cards, in particular, are easy to get. A low credit score does not matter much. Same with little to no credit history. In fact, there’s a better chance of getting approved. Retailers do not want to reject loyal customers. Having less strict requirements is one way to not disappoint. There is less danger of losing customers to major credit card companies.
2. Credit-building. Approving low-credit customers gives them a chance to establish or rebuild credit. It can help improve their FICO scores. They can eventually reach good standing, which would be beneficial to all. The borrower can acquire more things or apply for new loans. Meanwhile, creditors will have more good-paying customers. But this will all depend on the credit-holder. He will have to be a responsible user first. He needs to make full monthly payments without fail or delay. Also, he must make sure not to get other credit cards. Retailers may not be strict. But the bank connected to the store card may make things harder by looking into the customer more. It might lower the credit score.
3. Low credit limits. The advantage is not in how little a user can pay monthly using the card. It can be more of a disadvantage. Paying the minimum only makes the payment process longer while interest accrues. Online store credit cards guaranteed approval, unfortunately, have high interest rates. Sometimes, 10% higher than other cards. The customer ends up paying more than the original price. The advantage is in the chance to turn things around, in a manner of speaking. A low credit limit is a chance to establish better spending habits.
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Instead of paying the minimum, the user should pay the right amount on time. The user should not leave a balance. It is possible to leave the store without a balance. Many stores allow balance payoff at the cash register. The user should practice control and spend only on what’s necessary. This is what’s most important. Overspending is a fast way towards default. If there’s cash on hand, use it.
That said, it does not mean that applying for multiple cards is okay. Irresponsible use of multiple cards will just multiply the temptation to spend, ergo, the problem.
4. Discounts and Perks. They are what stores offer in the first place. They entice customers to buy things by promising discounts and perks. Cardholders become special customers with more privileges. It’s better if they are regular customers of the place. They could save more in the long run.
Why Get a Store Credit Card There are valid reasons why. A guaranteed approval store credit card can be good. It can be a better option over a prepaid or secured credit card. That’s as long the user maintains a low balance, if any, and pay every month. The rule is simple: Be a responsible user.