3 reasons to avoid having a credit card

3 reasons to avoid having a credit card - Store

Would you open a store credit card? This is a question almost every guest was asked at least once during a purchase at a retailer anywhere from a store to a big box retailer. The pressure to get up especially during the holidays. As a customer, it is understandable to accept the offer. There is usually a store discount for using the card, and it is common to get a sign up bonus immediately that can save you 15% or more on your current purchase. Although there is a value in a department store credit card, especially if you frequent often that particular business, it is usually wiser to use a credit card issued by a bank that comes with rewards or cash back .

Why a store credit card may not be a good idea

store credit card, also called co-branded credit cards may offer rewards, but you are more likely to gain greater benefits with credit card you can use everywhere. Here are three reasons for a store credit card may not be your best option.

1. High interest rates. Many store credit cards have higher interest rates, often exceeding 20% ​​and can sometimes be as high as 30%. To make matters worse, many store brand credit cards offer the same APR to each customer, regardless of their credit score. So if you have "excellent" credit, expect to pay the same interest rate than someone with approved credit "fair". It is smart to avoid paying interest whenever possible, but if you know you will have a running balance on every month, stay away from store credit cards.

2. low credit limits. You will be disappointed if you expect a high credit limit on your new store card. It is common for the cards have a credit limit of $ 1,000 or less, depending on the card. It can be easy to max out store cards, especially with a big purchase. This means your credit utilization rate could skyrocket, hurting your credit score. Ideally, you want to spend no more than 30% of your available credit at any given time. For example, with a $ 1,000 credit limit, you do not want to spend over $ 300 before paying the balance. This is a relatively low credit limit.

3. limited rewards. You get great discounts and win points with some store credit cards, but you're unlikely to match the cash back rewards and sign up bonuses of a credit card issued by a bank. While it is tempting to get a certain percentage of your first purchase with a store card, especially if it is a major purchase, you will probably gain greater benefits with a card that you can use everywhere.

what kind of card should I use?

Tens of best credit cards that can be used for purchases of all days that will not only win awards but also come with attractive sign up bonus when you reach the threshold spending. Here are four of our favorites that do not have an annual fee and you will earn rewards for every purchase you make:

The Chase Freedom card is a winner in our book for a number of reasons . For starters, you can get an amazing signup bonus $ 150 cash back when you spend $ 500 over the first three months of account opening. Plus, you get a 0% Intro APR for the first 15 months so that you will not have to worry about paying interest if you carry a balance in that time. The card also earns an excellent discount of 5% return on spot purchases in rotating categories to $ 1,500 value - now you can get 5% cash back on Amazon.com, Zappos.com and select department stores - unlimited 1% cash back on all other purchases. No annual fee sweetens the deal if you are looking for rewards. Another bonus is that you do not need excellent credit to be approved for the Chase Freedom. This means that those "good" credit scores (usually 660 or more) have a chance to be approved.

The card Preferred Blue Cash from American Express can pay real dividends when shopping at department stores, grocery stores and gas stations. For starters, you get a surprisingly generous 6% cash back on up to $ 5,000 of purchases annually to grocery stories, and unlimited 3% cash back at gas stations. You will also have 3% cash back at some department stores and unlimited 1% cash back on all other purchases. The card comes with a great cash back bonus $ 100 and a one-year subscription to Amazon Prime when you spend $ 1,000 in the first three months of account opening. There is still more to love: you will have a 0% introductory APR on purchases and balance transfers for the first 15 months. It comes with an annual fee of $ 75, but the value can be recovered quickly.

The Quicksilver Capital One Rewards Credit Card Cash is another option top because it is simple and easy to use. You earn 1.5% cash back on every purchase you make limitless! In addition, you get a $ 100 bonus cash back after spending $ 500 over the first three months of account opening. You'll also have a 0% Intro APR on purchases and balance transfers until September 2015. To top it all, there is no annual fee, and people with "good" to "excellent" credit have a chance of approval.

Although it does not offer an introductory bonus as detailed above cards, Citi Double Cash is yet another great option. Indeed, you will earn 1% cash back on every dollar you spend, plus another 1% cash back on every dollar you pay. This effectively gives you 2% cash back on all purchases, assuming you pay your bill, unlimited rewards. You'll also have a 0% Intro APR on purchases for the first 15 months you have the card. To qualify, "excellent" credit is generally necessary.

If you are looking for a new credit card, check our credit card reviews to see which might be the best option for you.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.