Popular Types of Credit Cards: Retail Rewards Credit Cards

When people go to a retail store, they are often asked at checkout time if they would be interested in opening a credit card with the store. This credit card is often referred to as a retails reward card and it can only be used in the store in which the credit card is offered. But what most people wonder is if they should go ahead and apply for these cards? More times than not the cashier is offering some amazing deals to get you to open one of these cards up with the store. However, no matter how great the deal is for the first time you use it, you first need to consider if you shop at the store enough to have your own credit card for the store? If so, then more than likely you will find that the added benefits of owning one of these cards is a smart decision. But what other benefits do a retail reward credit card offer?

These retail reward credit cards are going to offer the card holder specific benefits that are contingent upon them using the card. For example, during some sales, the person may find that they can use their credit card and receive even more off of their total order. Or they may find that the more that they use the credit card, the more coupons that they receive in the mail with their bill since they are showing the company that they are a good customer. Other times, using the credit card is required in order to get the sales that are being advertised. So in some cases, when the person does shop at the store all the time, having one of these reward retail credit cards is a great way to get even more discounts and sale prices, so it is a good thing to have.

The problem is that those that get these cards and do not pay off the balance each and every month. The retail rewards credit cards are going to carry a high interest rate than many other credit cards that are out there. Because these are store specific credit cards, they are either financed through the bank that handles the store accounts or by other banks. These banks do not offer the same interest rates that the credit card that your local credit card may offer simply because they think that consumers who take these retail rewards credit cards are a higher risk. In most cases, they are since they are offered to most everyone who has a decent credit score or at least has one other credit card to their name.

The thing to remember about these credit cards is that in order to reap all of the benefits that the card has to offer, the person must use this on a monthly basis. Those that only use this every now and then are going to find that they are not getting any of the benefits from the credit card which basically defeats the purpose of having this card in your possession anyway. For more information visit rcp2009.org.