Sometimes it’s far better if you’re trying to work on your credit to get a store or catalog shopping card than it is to get a conventional credit card.
Especially if you have poor credit or no credit, getting a credit card from a store or catalog shopping site could provide exactly the kind of fresh start credit opportunity that you need to get your credit back on track. Unlike conventional credit cards, catalog or store credit cards are more likely to take a chance on someone with poor credit, simply because the credit account cannot be used anywhere else, so the store is not apt to lose anything more than actual merchandise in the event that a new account holder fails to make the payments.
(Make no mistake, however, the effect on your credit report should you default is just as negative as a conventional credit card – so use your store credit account responsibly!)
Here are just a few of the reasons why you might want to think about opening an account at either a catalog shopping site or through a big name retailer:
- Catalog shopping sites and store credit cards are typically easier to qualify for than most major credit cards, especially if you have a poor credit score.
- Most of the time, you’ll get a quick decision when you apply for a catalog or store credit account (you’ll also likely get a nice discount on your first purchase, too).
- Most catalog shopping sites and store credit cards will start you out with a $300.00 credit limit, which is just enough purchasing power that you’ll be able to buy things, and you’ll still be able to make the payments.
- Especially with the catalog shopping sites, the monthly payments are usually low enough that you won’t even notice the effect that the extra payment has on your household budget.
- Interest rates are nearly always comparable with conventional credit card options and many times you will have the option to purchase on a 90 or even 180 day same as cash option (meaning no interest for anywhere from three to six months).
- Catalog shopping sites and store credit cards report to the major credit bureaus just like conventional credit cards, so over time, your good payment history will actually help your credit score.
- Over time, as you build a good purchase and payment history, you will likely see your credit limit increased substantially, not only enabling you to purchase more, but also to increase your “available credit” which can really help your credit score (depending on how much of your total available credit that you actually use).