fbpx
Search

Money Fix: When is applying for a store credit card a good idea?

  • November 12, 2019
  • By: Greenpath Financial Wellness

Excerpt from Newsday

No doubt you’ll look for ways to save money when shopping this holiday season. However, that 15% off, or whatever the sales clerk offers to get you to sign up for a store credit card, may not be a great deal in the long run.

Yet, according to new research from CompareCards.com, nearly one in three people polled said they’re likely to apply for a store credit card during the holidays, up from nearly one in four last year. This despite the fact that the average APR is 25.41 percent, up from 24.97 percent in 2018.

Walk away from the deal

“The initial discount is normally not worth signing up for a store credit card, especially if you will need several months to pay it off,” says Kelly Figueroa, a counselor with GreenPath, a nonprofit organization in Garden City that provides financial counseling and education. Higher rates eat into discount benefits.

Leslie Tayne, a debt resolution attorney with the Tayne Law Group in Melville, says that, ideally, the time to take out a new credit card is not when you are feeling financially strapped. You should be able to handle the costs of the card, paying special attention to its high-interest rate. Also know that opening a new credit card causes a hard inquiry on your credit report, which briefly and marginally affects your credit score.

Continue here to read the entire article at Newsday.

 

GreenPath is Here to Help

At GreenPath Financial Wellness, we are working to make it easier for everyone to achieve financial health. We can help you gain a better understanding of your spending habits, and we can help you create a plan to pay off your credit card debt.

Request a Call