Store charge cards will drag down your credit score

Nearly every store I walk into has a store charge card. Usually the store will offer 10-20% off of your purchase if you sign up for a card. Big deal. According to Bankrate.com, opening a store card account is an automatic 20-point hit to your credit score. Ouch. Why? Because “store credit cards are issued to anyone with a pulse.” The 10% you save on a pair of jeans is not worth the increased interest you will pay in the future as a result of your new, low low credit score.

They also have incredibly high interest rates, according to Wise Bread. (The Wise Bread article also lists five other financial products you should avoid: the 401k debit card, cards with maintenance fees, credit card or mortgage payment protection insurance, payday loans (duh!), and, of course, anything you do not understand. Sage advice all around.)

[via Lifehacker]

[photo: Chance Agrella]