No: You’re not sure about the interest rate
9dream studio/Shutterstock Typically, the interest rates of store credit cards are higher than other credit cards. According to a new poll released by LendEDU—they queried consumers about store-branded credit cards—the takeaways included that 45 percent didn’t know the interest rate on their store-branded cards, and 65 percent regularly carried a balance on their store-branded cards. Here are some more tips about the tricks and traps of credit cards.
No: You’ve already got a handful of cards
Africa Studio/Shutterstock Natasha Rachel Smith, personal finance expert at topcashback.com, based in Montclair, New Jersey, says your credit score is determined by the number of credit cards open, credit utilization, how long you’ve had cards open, and how many credit applications have taken place during a short period of time. “New credit card inquiries remain on your credit report for two years, and applying for too many at the same time can dent your score,” explains Smith. “While it is a known factor that when borrowing money your interest rate is dependent on your credit score, retail cards charge exorbitant interest rates regardless of how wonderful your credit worthiness is. Shoppers with great credit scores are still subjected to eye-watering interest rates well above 20 percent.” Learn more about how to keep your credit score high.