Tips on Choosing a Retail Store Credit Card
Retail store credit cards are designed to make your shopping experience much more rewarding. With many credit card companies offering these cards, selecting the one that is best for you can be quite challenging. However, you can make this a simple task, by keeping in mind a few key aspects. Here are some of them:
Opt for credit cards from stores that you prefer
By opting for a co-branded credit card from stores that you prefer, you will be able to make the most of them. When they offer discounts and special rewards for cards holders, you can easily avail them. It is best to limit the number of retail store credit cards you own. If you have a preference for a number of stores, ensure that you opt for cards only from those that will be most beneficial.
Research credit cards offered by stores
Before you avail a credit card from a retail store, ensure that you research the stores that offer them. Shortlist a few from these, based on a few key factors – reward points, monthly and seasonal offers, discounts and gift card options. Look at the benefits these cards offer you, and compare them with what you require from store cards. Select those retail store credit cards that match best with your requirements. Take into consideration other crucial factors like the interest rates and annual fees you have to pay for owning the credit card. The benefits offered by the card should outweigh the cost of owning it.
Set limits on budget
When you set out to shop with a store credit card, make sure that you set a limit on your budget. This should ideally be based on the amount you can conveniently clear the following month. If you are able to pay the whole amount from a month’s purchase on your card, your balance will be clear for the next month. This way, you can avoid paying the additional interest rates that would otherwise get accrued.
Consider your credit score
Before you avail a store card, take your credit score into consideration. Most credit card companies are likely to provide their cards only to those with good credit scores. The co-branded credit card you opt for, should allow you to either maintain your credit score (if it is a good one) or improve it.
A store credit card can help you establish a good credit history and improve your score. Make your payments on time, as this will be reflected in your credit report. Every payment made on time will contribute to a better credit score.
Many credit card companies offer retail credit cards, and American Express is one of them. The company, along with numerous retailers, provides rewarding retail store credit cards. Some of the retailers that offer such cards with American Express are Bloomingdales, Harrods, Costco, David Jones and Macys.
