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Accept a Department Store Credit Card

Accept a Department Store Credit Card

When you’re spending $50 or $100 at Macy’s, Victoria’s Secret or wherever you like to shop, I know it can be tempting to say yes to the nice lady behind the counter who offers you a 10% discount – if you just open an instant department store credit card. But believe me, you really should just say no.

Accept A Department Store Credit Card

Not only do department store cards carry much higher interest rates than do national brand cards, like Visa or MasterCard, but applying for that new store account definitely triggers a “hard inquiry” on your credit report because you’re seeking credit.

Accept A Department Store Credit Card

The end result: You could wind up dinging your credit score.

Accept A Department Store Credit Card

Estimates are all over the place, but some experts say an inquiry can drop your credit score by 5 or so points, while others say a single inquiry could cost you up to 35 points, depending on your current credit standing. (Read more about how inquiries on your credit report impact your credit score).

Accept A Department Store Credit Card

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Accept A Department Store Credit Card
Accept A Department Store Credit Card
Accept A Department Store Credit Card

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