Store Credit Cards - To apply or not to apply?

It never fails. I go into a store, browse around, try on a few things and then bring the items I settled on to the register. It’s then that I mentally prepare for the shutdown as I like to call it. That moment when the cashier says “would you like to apply for our store credit card and save 15% on your purchase today?” It’s sooo tempting. An extra 15% off a $200 purchase isn’t too bad of a deal. However, take this into consideration first. Is saving that $30 upfront going to be worth it if you are hit with interest charges at rates upward of 27-30%? Also, there is another little know fact. Every time a creditor, store or lender pulls your credit report, it lowers your score by 2 points! Doesn’t sound like much? It can be if you already have a low score to begin with. Or if you are on the brink of buying or leasing a new care, home or apartment. Additionally, the more open, available revolving credit that you show on your credit report can decrease your income to debt ratio. Which can prove to be a huge risk to creditors trying to extend you credit. Your best bet is to stick with cash, your good old Visa/Mastercard/AMEX and look for coupons to save you that 15% or more. Unless you’re a heavy shopper at that store and are disciplined enough to pay that balance before your bill, its best to steer clear of those store cards. It’s not worth it in the end!