Would you like to save 15% on your purchase today?
You get store employees telling you this almost every day you go shopping, however now at this time of year it seems to get you to think about it a little bit more.
Before I continue if you’re not already a consistent reader of this let me give you a mini breakdown of my background. My name is Wayne Sanford, a credit expert now in this business almost 12 years. I have reviewed over 16,000 plus credit reports for consumers across the United States, 90% of them typically have a financial goal whether it is short term or within a year. These goals are usually buying/refinancing a home or purchasing a car.
Credit repair is a service, just like fixing your car, your plumbing or representing yourself in court. Sure you can do it yourself, but if it was as easy as the media and news articles out there make it seem to be everyone would have 700 + scores.
Fact is its not and the companies reporting against you or on you have teams of attorneys who have taken advantage of every little law to their advantage and credit repair ( if you have the right company) can do the same for you.
Now back to the sales pitch of getting a store card. I always advice a majority of my clients to say no, everyone knows credit is important but you do not realize truly how important credit is until its needed TODAY and then It’s too late.
Surprisingly as credit is a math equation which is based on logic it’s amazing sometimes how illogical the credit system can actually be. First let’s discuss some of the logical aspects.
The store employee asks you if you want to save 15% and apply/get a store card today. It’s not guaranteed that is the first thing i want to point out. Then your credit gets hit with a hard inquiry (an inquiry that can lower your credit score).
Now I will note it can lower the credit score it is not always the case , it is credit report specific as every credit report is unique.
Now if you are buying $1,000 worth of things I would say yes as that’s a savings of $150. But the odds are you are not buying that much.
Another question is how is your discipline? Many people cannot handle credit very well unless they have either really messed it up in the past or are lucky to have a parent or guardian who really drills home the concept of how truly important credit is.
This next part is the logical aspect of the credit system grading a credit card (revolving account). If you get a store card then the card can only be used at that store. A regular credit card (Visa, Mastercard, Discover, American Express) can be used all over at every store (at least the ones who accept it).
This logic dictates then that these types of cards will be graded at a higher level than a store card. Now a store card can actually stay in your drawer for years and not get closed as the holder believes eventually you will come in and use it. The other main cards will close your account after a certain time frame (each lender has their own timeline) if you have not used it for a while.
That is some of the pluses and minuses of each card. Now if you were thinking this blog will tell you exactly what to do it cannot. As I mentioned earlier each credit report has a different amount of data on it than the other credit reports on other people so it is unique and what affects one person one way will not affect the other the same way.
However, my overall advice on this subject matter? I usually say no to store credit cards.
So that’s it for today, hope those of you that get these offers just say no.
Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand:
How the “Real world of credit” works. wayne@waynethecreditguy.com
And of course if you need some credit work to increase your credit score or have credit questions just email me or call me today to discuss!
Wayne
