During a holiday season many retail shops offer the consumer retail credit cards. They do this in order to facilitate and simplify the purchase of the consumer. Many of these consumer retail cards have a low rate of interest as a promotional offer. It is common for retail credit cards to be a common use cards from the known companies such as visa or MasterCard but branded by the retail store.
Before you consider opting for the retail credit card offers you must bear in mind that the low interest rate that might tempt you may be a promotional offer that may lapse in a short time. In fact the promotional interest of may only be available for the next couple of months or so. While you can save money in that very instant by using a retail credit card you will only save money in the long run if you intend to pay off the balance at the end of the month. Whenever you use a credit card to make a chase you are taking on further debt. Any credit card debt must be considered carefully and should not be made impulsively.
On the positive side of things when you open a retail credit card account you are increasing your overall credit limit which decreases your debt utilization ratio, provided you don’t immediately charge the new credit card to its maximum limit. A low utilization ratio is considered favorably by the credit scoring model. Don’t get carried away and applying for retail accounts if you intend to apply for a more serious loans in the near future such as an automobile loan or a home mortgage. Lenders consider surplus opens revolving credit accounts as a potential risk since it means that the consumer could get himself into a lot of debt any time they chose to.
And don’t grab the first retail offer that you get for credit card but research is to which offer is the best and where you can save the most amount of money. Making use of the promotional offers on retail credit cards can be an excellent way to save money and use credit to your advantage but bear in mind that it is still a credit card and must be used only for what you can afford to pay back.