Credit - Beware The Shopping Mall Monster

Beware The Shopping Mall Monster

Like me, you've probably been offered a fair old number of these by now...

..and, if you're like most people, chances are you maybe own at least one or two.

They always seem to put in an appearance at just the right (or wrong) moment...

It might be Saturday and you've just seen the clothing item of your dreams.

That can be a pain, though, if this month's paycheck isn't due for another week.

You're undecided.

Until, that is, you're offered...

..a store card.

One of the horrible ironies about store cards is that the vast majority of people who sign up for one actually had no intention of making a purchase before they left the house.

But if you're caught in the above situation, the convenience factor frequently wins the day, doesn't it? Add on top of this all the little goodies thrown in as a sweetener...

An introductory discount on goods ? typically around the 10% mark ? extra money off during sales periods etc...

But let me tell you what the sales assistant probably won't...

For starters, did you know that many department stores will currently charge you anything up to 30% interest on that little card they offer you? (yes, even those ones with the pretty pictures.) That's around double the interest of your standard credit card!

Sound scandalous?

Well, hang around... it gets a lot worse!

Here are just a few of the pitfalls you should look out for the next time you're offered a store card...

Buy now, pay within the next three months. Sure...great deal if you do actually manage to pay it off within that time. If not, some stores will charge you interest from the first day you bought!
Ask questions: In a recent study, it was found that in one third of cases, information on the interest rate on the card (among other things) was not freely available.
Don't be tempted to take out expensive and often useless insurance. This can be a monthly amount of 1.5%. With interest repayments of 30%, you could end up with an annual rate of 56%!
Also, steer clear of any payment protection insurance scheme. If you were to lose your job or couldn't work due to illness or accident, you'll find that this 'insurance' generally only pays the minimum monthly payment, not the whole balance!
Be on your guard. Staff will usually ask you to fill in the application form in store. In many cases the insurance box will already have been ticked and you will simply be asked to sign up for insurance.
Study the terms and conditions carefully in the store. Staff have been known to refuse customers to take away the form.

Probably the worst thing about store cards is that it's very easy to build up an array of them so that, before you know it, there seems to be more of them in your wallet than there are coat hangars in your wardrobe.

And in what seems like no time at all...

.. you've just spent way, way beyond your means!

If you feel you must buy on credit why not use a credit card with a low or even 0% rate? After all, if you're going to have debts, you may as well make them cheap ones!

A store card might seem handy and convenient but they generally come with a horrendous hidden cost.

So next time you're a tempted to take on another piece of plastic, make sure you get all the facts up front.

Your bank balance might just thank you for it.

About The Author

Colin Mc Caig is dedicated to helping others become debt free and start their own home-based business. Get his free 6-part mini-course. Learn the powerful secrets to becoming debt-free using only the money you have today. Send a blank email to: mailto:colindebtfre@demandmail.com

Car Insurance | Car Rentals | Health Insurance | Weight Loss | Life Insurance

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 |

Annual Credit Report And Free Annual Credit Report
Getting an annual credit report review has been the advice of many financial managers as they guided their customers to be aware of all information on credit reports. Would the idea of a free annual credit report be good news? Consumers are thrilled with the new federal mandate that demands the three major national credit bureaus offer a free annual credit report to anyone requesting copies of their pe...(related: Credit)

Some Truth About Credit
Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. No matter who you are or what type of business you are considering, credit is a vital component to be considered when developing your business idea and business plan.Your credit history and status will always be a factor when lenders consider financing your entrepreneurial endeavor. No matter what type of loan, even loans for those who may struggle to acquire traditional financing, such as the SBA funded micro loan, will consider credit as one of the underwriting factors.Because your credit history and status greatly impact your bankability and ability to acquire business funding, it behooves you to spend a significant amount of time developing and creating positive credit status an...(related: Credit)

Do You Know Whats On Your Credit Report ?
It is important to know your credit rating for a number of reasons. Believe it or not there may be errors in your credit report, and it is essential that you repair them immediately.It is a common practice for a bank or lending institution to check your credit, and within minutes they will know more about your financial background than you will. Is this something that is appropriate and to your advantage? No, absolutely not. It is truly a disadvantage for you when negotiating a loan...(related: Credit)

To Repair Credit Is No Longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days...

To repair your bad credit does not necessarily mean that you now have a good credit, absolutely not.

When most people have bad credit, they either purchase a credit repair book or seek a credit expert help. But before you do anything about your bad credit you need to understand ...(related: Credit)

Building A Credit Report Lenders Will Love You For
Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never forget that. But the lender's representative will love dealing with your credit application if your credit report is good. If you have a high credit sc...(related: Credit)

Credit Counseling: Is It Really Necessary?
Not everyone has a positive experience with credit counseling. Potential creditors often frown upon consumers who are going through credit counseling, denying them credit or sticking them with elevated interest rates on new lines of credit.Some consumers, who have found themselves in this situation due to credit counseling, would tell you that you can accomplish the same things on your own. It is simply a matter of educating yourself on the inner workings of the creditor you are dealing with. Many who have dealt with the negative affects of being associated with a credit c...(related: Credit)

When You Are Eligible For A Free Credit Report
By Federal law, you are entitled to one free credit report per year directly from a credit-reporting agency only if you certify that:1. You are unemployed and seeking employment in the next 60 days.2. You are receiving public assistance.3. You believe there are inaccuracies in your credit report due to fraud4. Also if you have been denied credit on the basis of information in a credit report, you are entitled to a free copy of your credit report from the credit bureau that supplied the credit report.5. Residents of Colorado, Maryland, Mas...(related: Credit)

Like It Or Not, You Have A Score To Settle!
Like It Or Not, You Have A Score To Settle! (Part 1 of 2 on Credit Scoring)Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring. And, its impact on your financial future can mean more to you than a college degree.You may never know your precise credit score, but you need to know if you're at risk!Credit Scoring ... Why It's So Important:Ever wonder how a creditor decides wh...(related: Credit)

Tackling Bad Credit
The first time I heard the term credit history was when I approached a lender for a secured loan. Being a first timer I was completely ignorant of the procedure and didn't even know that a credit record of our transactions is prepared by some credit reference agencies.Thanks to the discipline in making the repayments to the loans and mortgages, I never let my credit history degrade. But there are many who are not as fortunate as me. A recent statistics revealed that one out of every five people is having a bad credit history, i.e. a sizable part of the population has defaulted at some point of time in the past.Loan providers are not as generous to the people having a bad credit history as they are to people like us. Whatever be the reason of the default, loan providers always believe...(related: Credit)

Tips For Getting Your First Credit Card
Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. It is true, finding the right issuer and building a credit card history is not easy, but it can be done.When you apply for a credit card the bank will usually ask you questions regarding your previous credit lines. Most young people do not have any type of credit history and this makes the banks unable to positively respond to their application.There are two things that you can do to go around this problem. One is lookin...(related: Credit)