Posted on December 22, 2007 at 8:05 am I keep reading all this info about staying away from store credit cards, but they can't all be bad.  What if I shop at a place regularly and pay the bill on time so that I don't get a huge jump in interest.  Are they ok then? 

Posted on December 22, 2007 at 12:08 pm They're not necessarily totally bad (just mostly).  Store credit cards usually don't have the best terms.  If you need a credit card it would be better to apply for a standard one that can be used at any store, instead of 20 individual ones for each store.The only exception is, store credit cards are often easier to get approved for and can be used as a means for building credit in the beginning.

Posted on December 22, 2007 at 6:02 pm I have a store card for the convenience store where we buy our milk, bread, and eggs.  They give a 3% discount on all purchases, plus when they send the monthly statement they send coupons for a free coffee, cookies, etc.  We pay the bill off in full each month, so in our case, this store card is a good deal.

Posted on December 25, 2007 at 9:36 pm In most cases, a secured credit card (where you pay a deposit in advance) is better than a store card.  If you shop around, you can get pretty good terms, and you can use it anywhere.  It's a better way to build credit in the beginning, in my opinion. However, to JeanLorie's convenience store card I say, "Why not?"  If you pay the bill in full each month, you avoid costly finance charges.  Plus, you're taking 3% off some of your groceries!  Not everyone would be as disciplined, though.

Posted on December 28, 2007 at 11:10 am Store credit cards have something called Terms and Conditions. Everyday run of the mill credit cards have something called Terms and Conditions. Secured cards have something called Terms and Conditions. My point: Read each and every line so you know what you are agreeing to when you accept their card. For example, my wife recently made a purchase at Sears and was offered a X% discount for just applying. She accepted their request for application and received her discount. She also was accepted for the card and when the statement (some call this a bill <g>) arrived so did the Terms and Conditions. The first thing we looked for was the grace period. It had an acceptable one. The second thing we looked for was the interest rate and the date they start charging interest. The rate is unacceptable. However, if we pay the bill by the due date, there are no charges so the rate almost became a moot point. If we don't pay by the due date, oops, shame on us because the interest rate will be assessed from the date of purchase. Because we won't be using the card, we will keep it as it also brings along mailings of discount coupons and other specials. Assuming we receive a discount on clothing and we are in the market for that type of apparel at that time, we will undoubtedly use their discount offer. I guess all of the above boils down to what I said in paragraph 2: Read the Terms and Conditions.

Posted on January 8, 2008 at 8:11 am We had been using American Express and paying off the balance to avoid interest charges. Once for whatever reason, the payment didn't get to them in time and of course we paid interest on that bill. I was surprised to realize that we had to pay some interest for the next month too, even though the balance was back to zero. We still use the cards for the Air Miles, but now I pay the balance online within a day or two of receiving the statement.