Should I get Lots of Store Cards?

Store cards are available in many of the big chains of stores. These are not just like a loyalty card, but they are more like a credit card. You are able to use them in store to pay for things, just like you would a credit card and then you will get a bill at the end of the month where you can pay off the whole card or just pay back a minimum amount and pay interest. Stores will do a credit check before they issue them and the credit limit they give you will be determined by your credit score.

As many stores offer the cards, it can be tempting to get cards from lots of them. If you shop regularly in the stores then you could benefit from doing this. This is because card holders often get benefits that other customers do not. It might be that you can get some discounts, invitations to preview sale events or other benefits. This could mean that you get a better chance of getting some better deals from the shop and therefore the card could be really helpful. Having a lot of store cards for different stores could mean that you will be able to take advantage of deals from lots of different places and this could really help you to save money. However, you do need to be careful that you are not tempted to buy things that you do not really need just because it is on special offer. It can be so tempting to think that because something is reduced that it is a great bargain, but if you were not intending to buy it before, then perhaps you should not buy it now.

A risk with having a lot of different store cards is managing what you owe on them. When you get your monthly bill for the card, you will need to decide whether to pay the amount in full, to only pay a minimum amount or something in between. If you do not pay the full amount then you will be charged interest and that means that you will be paying extra. You will need to decide whether you think that it is worth paying this extra money for the items that you purchased. If you are keeping track, you may find that you cannot afford to pay off the full balance and therefore have to pay interest on the card. You may end up paying more in interest than you saved and you could be annoyed with yourself about this.

When you have a lot of cards it can be more difficult to keep track of what you are spending. You can check the statements, but with so many it is harder work than if you keep everything on the one card. You could get the store cards but just use one credit card to buy everything so that it is easier to keep track or even not use credit when you are buying things at all. Being a card holder will still give you access to the special offers but you will not risk getting out of control with your spending if you do not actually use them.

Another option is to use the card and then pay off what you have spent right away. You might want to use the card because there is a special offer if you use your card. Often stores will give new card holders a certain percentage discount, for example and if you are making an expensive purchase it can be worth taking advantage of this. However, if you are concerned about making sure there is enough money to pay it, you can just pay it straight off and then you will know that it is done.

Therefore getting lots of store cards can be risky but it can be worth doing if you are going to get special offers as a result of having it. You do need to be careful though and make sure that you manage your money carefully and therefore find ways to make sure that you will not be in a situation where you cannot pay off the cards when you need to.