 TITLE: Can Store Credit Cards Build Credit? CONTENT: Is it a Good Idea to Get a Store Credit Card?\n---------------------------------------------\nNot sure if a store credit card is worth it? A store clerk may have a flashy sales pitch for you, but it's important not to make any hasty decisions when it comes to your credit. Many offer enticing perks to attract customers, but it's also essential to understand the drawbacks before you apply.\nSome key benefits of store credit cards to consider:\n*   **Qualification criteria**: It might be easier to get approved for a store credit card, especially if you have bad or limited credit.\n*   **Cardholder benefits**: Some store credit cards offer exclusive benefits to cardholders, like promotional financing offers and access to select products.\n*   **Customer rewards**: This perk allows you to earn points, cash back or loyalty rewards that can be used toward future purchases.\nYou may want to steer clear of store credit cards if there are traditional cards with better incentives that you can qualify for. Here's why:\n*   **Higher interest rates**: Store cards generally have a steeper interest rate than traditional credit cards. This can be an issue if you don't pay the balance in full each month. Also, be mindful of deferred-interest promotions—a 0% APR offer can be a great deal if you pay off the balance before the promotional period expires. Otherwise, interest may be retroactively applied when the offer ends, even if you've paid off a bulk of the balance.\n*   **Minimal rewards**: The rewards offered by some retailers may be far lower than what you can get with a traditional rewards credit card.\n*   **Lower credit limits**: Expect a lower credit limit with a store credit card. This can mean bad news for your credit utilization ratio and credit score if you carry a balance each month.\n*   **Limited use**: Closed-loop store credit cards can only be used with the retailer, so you will need to apply for another card to make other purchases. In this case, you may be better off applying for an open-loop credit card or avoiding cards from the retailer altogether.\nDeciding if a store credit card is right for you is a personal decision. It depends on how you intend to use the card, if the cardholder benefits are worthwhile and whether you think you can afford to make payments.\nA store credit card could be a good option if you frequently shop with the retailer and plan to take full advantage of the card's incentives. It may also help build credit if you use the card responsibly.\nHowever, you may be better off skipping the store credit card if you qualify for a traditional credit card with a lower interest rate and better perks if you can qualify. You should also avoid store cards if you already carry high debt balances or could struggle to keep your spending under control and possibly carry a balance. END