Why you may regret signing up for a store credit card

3. TJX Companies Inc. (2007) -- 94 million credit and debit card records lost at a cost of $5.64 million (iStock/Deejpilot)

Everybody wants to get the best deal this holiday season but make sure the deal won’t end up costing you in the long run.

Many retailers will offer extra savings by taking out a store credit card. A survey by Credit Card Insider shows they could end up becoming more of a headache than they’re worth.

While those discounts, rewards, and sales coupons may sound great at the time, these stores may not have the best intentions.

More often than not, retail employees are required to push these credit cards to customers. Many customers are revealing they regret getting one.

In the survey done by Credit Card Insider over 3,700 cardholders were surveyed:

  • Over 40% of respondents revealed they regret applying for a card at all.
  • Over 50% say they had to pay interest charges on these cards, not able to completely pay them off.
  • Almost 1 in 5 people say they have debt remaining from last year’s holiday season

Credit Card Insider also recommends double-checking the interest rates for these cards before you apply.

They often have a 25-30% APR which can be costly if you can’t pay the card off all at once.

These store credit cards can be a good option if you want to build your credit or if you frequently buy from a certain brand.

However, if you’re just applying for that one time discount, a credit card may not be worth it.

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