When shopping you will most likely encounter many promotions that are intended to sway you to spend money at that store. Although there are some deals to be had, there are also many reasons as to why you should be skeptical of these deals. Often when things seem far too good to be true, especially when it comes to finances, they are. That is why you need to use your internal gut feeling when it comes to these type of promotions.
Common Offers
A common way that you may be approached about in-store credit cards is when you are checking out with your items. You may hear the salesperson tell you about the ways in which you can either hold out on your payment for a period of time, usually 6 months up to a year. This is often interest free, but only for that first window of time. In reality the high interest fees start the minute that the ‘no pay period’ is over, and these rates are often upwards of 30%, you may also be offered a discount on your purchase, like 20% off your purchase total. This may seem like a really good offer, but remember that there is most likely a catch.
Avoiding Sales Pressure
When you are at the checkout you may be faced with an overly enthusiastic or even pushy sales person. They will try to get you to sign up for the card because that is what they are pushed to do. Remember why the store would want you to sign up, which is to make them money. They may ask you for your email address and ask if you want to be on their promotions list. Remember that you are under no real pressure to sign up, so calmly but firmly, tell the sales person that you will think about the offer, but would like to consider it longer at home. Tell them that if you are interested you will come back and sign up for the offer.
The bottom line to remember about in-store credit cards is that they should be avoided. The risk far outweighs the reward.