It is common to bump into amazing high discount credit card sign-up offers from various stores throughout the United States. When caught in this type of situation, the right thing to do is "Say no, thanks," according to Matt Schulz, a senior industry analyst at the CreditCards.com.
In a survey released by CreditsCards.com, a credit card comparison website, retails credit cards nowadays are turning more and more unfavorable for consumers. Retail cards have an average APR of 23.23 % as opposed to a mere average of 15.03 % for all other credit cards. This staggering difference means a consumer basically shoulders as high as 84% markup when using retail credit cards.
Charles Tran, founder of CreditDonkey.com, a credit card comparison website, warned that retail store credit cards are skimpy on the benefits and most often loaded with high interest rates. "A good credit card is hard to find," he added.
To help consumers avoid bad deals, CreditCards.com cited, based on its survey, the top 5 credit cards with sky-rocketing interest rates. Zales leads the list with up to a 28.99% APR.
Office Depot Personal Credit and Staples Personal Account followed with an APR of as high as 27.99%.
My Best Buy was fourth on the list with up to 25.24% and 27.99% APR depending on your credit score. My Best Buy Preferred placed fifth on the list with an APR of up to 25.24% and 27.99% depending on the credit score.
A retail credit card does have its shares of benefits too. It is useful in cases where consumers and shoppers who pay their balance in full and on time. Retail cards also offer higher discounts on special sales and rewards.
For consumers who are having a hard time paying their balances on time however, retail credit cards are definitely not the best option to consider.
