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Showing posts from January, 2014

Finance Fridays: Department Store Credit Cards

We have all heard the shpeel before: sign up for our store card and receive 15% off your total today. I was one of those cashiers who said that over and over again, all in hopes of receiving $3 bonus per card signed up for at my register.
TRUTH #1 Store cards are HARD inquiries on your credit report. Your credit standing is reported by three major credit bureaus: Equifax, Experian, and Transunion. This inquiry is not as negative as having an outstanding bill unpaid, but it does contribut to lowering your score a bit. How much lower is really part of a matrix used by each company. Try to hold on to every point of your credit score.
TRUTH #2 Store cards have high interst rates. Interest rates are charged to your total balance due, and most of these cards charge 15% to 28%. This annual rate (APY or APR) will be charged on ANY balance you have. And, to top it off, it accues DAILY. Word to the wise, if you have these cards, pay them off in full each month. Pretty please!
TRUTH #3 …