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Department store credit cards have a few of the highest rates in the credit industry and also you must be wary of their tactics to allow you to sign-up. Store credit cards are the start of financial disaster for millions of people who get sucked in by what are seemingly amazing offers in order to save money on purchases. Here's how department and retail stores suck you in to register for their credit cards. It starts in the checkout stand, you are placing your merchandise about the counter for the sales clerk to process your sale after which they ask: "Would you like in order to save 25% of your purchase today? "This is really a loaded question; of course you want to save 25% off your purchase, that wouldn't want that? Your reply is actually, "Yes, I certainly would like 25% away my purchase. "The clerk then teaches you the store credit card application type and says, "If you apply for that store credit card, you get 25% off this purchase at this time. "You apply to take advantage of the seemingly amazing offer. But be ware this may be the moment your credit takes the nose dive. First of all, each time you apply for credit, it comes with an impact on your credit score. For those who have been thinking about a mortgage loan or possible a minimal interest balance transfer credit card from the regular card issuer, your application for that store card could impact your capability to acquire other credit. The next time a sale clerk tries to allow you to apply, politely decline. Your credit score will be impacted by an offer similar to this. And, if you do apply for the card and you tend to carry a balance, then you will be paying exorbitantly higher interest rates costing you much more money than the 25% you saved about the merchandise when you applied for the actual card. Department and retail stores know that there's serious money to be made by giving credit to consumers so be very cautious about these one time offers, they are not just like they look. Tips for Maintaining a great Credit ScoreTo maintain a good credit rating it is wise to have one charge card account and avoid applying for a number of cards. If you have a single long standing account that you simply pay on time you are far better off than having multiple credit credit cards. A very common misconception many consumers have is when they continually open new accounts this will help build their credit score faster. In fact, if you continually open new accounts it'll have an adverse impact on your credit rating. The reason being that you could max out all of your cards thus putting you in the group of a risky potential customer for a lender, if you are in the situation of getting multiple credit card accounts then you have to take action and close some of the accounts, in fact I recommend closing basically one account. The credit card account you should keep open may be the card you have held for the actual longest period of time because that leads to determining your FICO score. If you carry a balance on several cards and therefore are considering my advice of closing out basically one of your accounts, the best thing to do is call the card issuer where you've held an account for the longest time period and ask if you can obtain an introductory interest free period and transfer existing balances to that particular card. In most cases the charge card company will accommodate your request. To maintain a great credit score you should next start reducing your revolving credit line because a higher balance also impacts your credit rating. To summarize, your plan of attack for maintaining good credit ought to be like this:
1. Avoid applying with regard to new offers, particularly department or store cards. 2. Consolidate existing credit card balances onto one charge card. Ask your bank for a 0% opening rate on balance transfers. 3. Start paying higher payments onto your consolidated credit card by benefiting from the 0% APR offer. Since you've been paying your cards with curiosity included, a 0% APR introductory period provides you with the opportunity to pay down the total amount on the card. So remember these words of wisdom next time a sales clerk asks if you'd like to save 25% off today and you'll avoid the pitfall that millions of consumers fall for each day.






Colin McDougall is the editor in chief for that website Crediteria. com The website is devoted to helping consumers select credit cards McDougall's goal in life would be to help average consumers manage their finances to savor happier lives. Increase your financial cleverness today at http: //www. crediteria. com

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