Are Store Credit Cards Bad?

The deals and card discounts maybe tempting, the high interest rates are not

No matter how long your holiday shopping list is this year, we suggest you avoid one thing: A retail credit card.

There’s often that enticing offer of a discount at checkout — but do your best to avoid the siren song.

Unfortunately, consumers tend not to heed this advice. Two years ago, Marketwatch reported that about one third of consumers said that they were “considering” opening a retail credit card in the near future. That’s because retailers make their retail credit cards almost irresistible. They often have a low credit-score requirement and come with a discount on items purchased that day.

According to a another study from, consumers who previously opened a retail credit card, 50 percent regretted it. Once the shine of the sign-up deal fades, you find yourself holding a credit card with sky high interest rates. The average APR on retail cards is now 24.14 percent. Meanwhile, the average APR for all other credit cards is just 18.04 percent.

Consider the difference in interest rates before signing up for a retail credit card. That high APR will make payments extremely difficult.

Instead of signing up for a store credit card seemingly designed to get you to fail, consider a SDFCU credit card. With low rates and no annual fees, the right credit card for you may be as close as SDFCU.


Credit Cards