A store credit card might be tempting offering discounts and cashback that might seem to help save money without realizing they’re paying more that isn’t worth a small discount until it’s too late. 

Nearly every big-name retailer offers customers a store credit card that can be enticing to customers offering additional discounts and hooks customers with a bonus for signing up. Many customers are interested in the benefits of discounts without being aware of terms and conditions that can be costly.
 
It starts with an associate asking customers whether they would like an additional discount on their purchase with most reluctantly agreeing and handing an application for a store credit card. Typically stores only offer this discount with a purchase that will automatically be charged to the credit card.
 
Customers think they are getting a great deal but can cost them more later when it comes to paying the bill that usually comes with a high interest rate. These are things to consider when being offered a store card that can help on your next shopping trip.
 
Many customers are enticed by getting a discount on their purchase, but most discount options aren’t even worth the hassle. A majority of store card discounts are low with 10% to 15% off that will cover the sales tax in certain states.
 
Store credit cards only apply to that one store which can be limiting with discounts and is better to consider a credit card that can get 2%cashback on all purchases with other perks that are better than a store credit card. Another downside of store credit cards is high interest rates typically20% to 25% with a 5% minimum payment that will actually profit from discounts offered.
 
Retailers benefit from customers with store credit cards as they are tempted to shop at the store again with the incentive of getting a discount paying with the store card. Every single purchase with a store credit card will profit the company and put customers at risk for paying more interest rates.
 
Most customers make a rush decision thinking about the discount and not reading the fine details of the credit card without knowing about the high-interest rates. Associates don’t disclose the interest rates and focus on the discount to entice customers but can impact the customer’s finances in the future with the potential to break their budget.

Customers might not realize at the moment when signing up for a store credit card, but their credit is immediately impacted as the lender pulls a credit report. This can negatively impact a credit score by a couple of points, but several credit checks can greatly impact a credit score all for a small one-time discount.