Please beware of credit cards from retailers!
Capital Budget Strategies LLC, Austin’s best Money Coach and Financial Advisor, advises that before you open yet another retailer credit card account, read the fine print!
Money Magazine reports on a study by CreditCards.com that found retailer credit cards charge an average of 23.8% versus the national average credit card rate of 15.2%. Therefore, while you’ll be tempted to save $25 on your current purchase over $200, it is not worth it in the long run.
Retailers have it all figured out. They have teams of Harvard MBAs finding exactly how much rebate they need to offer to entice their customers to get their card, so that they will end up paying their outrageous interest. A national retailer is not making an offer to be nice, but to make a profit! The discount retailer Big Lots leads the “charge” with a 29.99% interest rate.
Do you get that? Big Lots in Austin will charge you almost 30% on late charges. But at least you saved 10% on the day you signed up, right?
So before you head off to South Congress Avenue or The Domain Northside, beware that signing up for a new retailer credit card should not be part of your shopping experience. Not only will they do a “credit check” (which in turn hurts your credit score), but they will be socking you on interest payments!
Capital Budget Strategies LLC, Austin’s best Money Coach and Financial Advisor, can help you organize your finances. For only $149, we sit down with you and help you build a personal budget, an emergency fund and a Snowball Debt Repayment Plan to pay off your credit cards, school loans, auto loans and mortgages. Give us about four hours and we will be your GPS on the road to financial freedom.
With all the fabulous shopping in Austin, you probably have enough credit card debt already, so why would you want some more?
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