17 Dec Is it worth getting a store-branded credit card?

Q. I have received many offers for store credit cards while holiday shopping. I’ve never gotten a store card before but I know I’ll get lots of coupons if I do. Is it worth it?
— Shopping still

A. All year long, but especially during the holiday season, you’re right that lots of retailers are hawing their own store brand credit cards.

These cards may be worth it if you plan on paying off your card in full each month, said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield.

But if not, you need to be aware that many of these store cards charge a higher interest rate than those of ordinary credit cards, Gobo said.

He said store cards, which can only be used at that retailer — whether it’s in-store or online — may offer a zero percent introductory annual percentage rate (APR) as an incentive to apply, Gobo said.

But make sure you read the fine print.

“Many stores advertise zero percent interest for a certain period of time, but the deferred interest clause may contain language that charges interest on the entire amount — even if you made some payments — if you do not pay them off entirely by the end of the promotional period,” Gobo said. “Caveat emptor – buyer beware!”

But it can make sense to open a store credit card if you are a frequent customer, especially if they offer a “cash back” on your spending, he said.

So once again, read the fine print, and happy shopping!

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This story was originally published on Dec. 17, 2019.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.