Ditch the Store Credit Card and Join the Best Credit Union in Las Vegas
"Do you want to save ten percent today and sign up for our store’s credit card?" You’ve probably heard some variation of that offer nearly everywhere you shop. From grocery stores to boutiques, more places are offering store credit cards and even if you don’t have one yet, you may be wondering whether it’s a smart financial move for you. Before you sign up for the next offer at check out, consider the pros and cons of store credit cards and whether a credit card through the best credit union in Las Vegas may be a better choice.
Improve your Credit
One of the most compelling reasons to open up credit cards isn’t the discount on the initial purchase but the lure of improving your credit. Your credit score is determined in part by your credit utilization rate so having more credit available but using less ultimately increases your score. Store credit cards are reported to credit bureaus so having a store credit card can positively impact your credit score.
But having more credit cards open and available doesn’t always translate to a higher credit score. The more credit cards you have, the higher chance you run of accidentally missing a payment or not being able to pay off the full amount every month. Missing a single payment could negatively affect your credit score 70 to 90 points.
Ask About Interest Rates
Store credit cards are notorious for high interest rates because they approve those with credit scores too low for traditional credit card companies. Store credit cards often have interest rates exceeding 20 percent, even as high as 30 percent. Compare typical store credit cards with the best credit union in Las Vegas, CCCU’s credit card. It has interest as low as 9.99 percent; now it’s easy to see why a store credit card may not be the best idea.
Consider the Limitations
While many store credit cards are affiliated with Visa, MasterCard, or American Express, some are only available to use within that particular store. This reduces the issuer's risk but increases yours, making it more difficult to budget effectively, leaving you more exposed to identity theft and more likely to miss a payment. Comparing the perks the card provides, such as discounts with every purchase, against the risks may show the risks far outweigh the benefits.
Join the best credit union in Las Vegas
While a store credit card can help those with very low credit reestablish their credit, ultimately it isn’t the best choice for most people. The high interest rates and limited use make it more of a risk than a reward. Instead, join the best credit union in Las Vegas, CCCU, and apply for our credit card. We can help you reestablish your credit with no annual fees and low interest rates. If you’re ready to rebuild your credit or simply use a more convenient card for purchasing, contact CCCU at (702) 228-2228 to speak to a service representative.