(WTNH)– As you’re swiping the plastic this shopping season, it can be tempting to try to save a little money by opening a new store credit card.
We’re stretching your dollar with why you may want to reconsider. The 15 – 20 percent off your purchase may not seem worth it when you consider the interest.
USA Today reports the average APR on a store card is 28.26 percent. Compare that to the 16.5 percent average on bank or credit union cards.
Late fees make the savings meaningless. USA Today says you may save $30 on a purchase, but if you’re late on a payment, it may cost you between $27 and $37.
Spending more doesn’t save you money. Even if it is on sale. As you become a loyal customer, they track your spending and send you deals. Great way to save but even better way to overspend and make impulse buys. You may want to limit your exposure.
And know that having too many cards can hurt your credit score. Sometimes these store cards have a small limit, like $500. Spend too close to that and that can also hurt your score.