Store cards: seldom the better deal

With offers of an additional 15 percent off your purchase or free merchandise, it’s tempting to apply for credit cards from your favorite retail stores. Think twice, however, before signing up. If you don’t pay the bill in full at the end of each month, you could end up paying much more than you originally would have saved.

Why they’re not as good as you think

That’s because interest rates on retail cards average about 10 percentage points higher than credit union credit cards.

Store cards usually offer special incentives for cardholders to increase loyalty and encourage them to spend more. The average household has about seven store-issued credit cards.

If you plan to buy a car or house in the near future, it can hurt your chances to get a loan at a favorable rate if you have many recently opened lines of credit. It’s usually better to have one major credit card that you can use for all items you wish to charge. Click here to check out the three types of SouthPoint Visa credit cards we offer.

Copyright 2008-2014 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.