Should you open a business with a credit card? Consumer Reports has the answer!

NASHVILLE, Tenn. (WTVF) — Many of us shop online these days, but if you actually go into a department store or other large retailer, you’ll probably get the question.

This is the question you receive at checkout, not the paper or plastic question. But do you want to open a credit card in store? They often suggest that you can save a lot on the purchase you want to make.

But here’s the thing: you should really think twice before signing up for one of these cards.

“In general, this is not a good idea. Sure, those upfront savings can be very tempting, but if you don’t pay off that balance before the end of a promotional period, you’ll be paying high interest,” said Brian Vines of Consumer Reports.

While the average credit card has an interest rate of around 20%, the interest rate for retail or co-branded credit cards is at an all-time high of 30%.

And some are even higher! Credit cards from TJX, JCPenny, QVC and Walgreens are almost 35% – Burlington, Big Lots and Michael are almost 36%!

And we know that around half of Americans carry a balance month after month – and paying more money can affect your credit score!!

So is it ever a good time to think about signing up for a store credit card?

“If you shop at this store a lot and make sure to pay off your balance each month or before a promotion ends,” Vines said.

However, keep in mind that many branded cards have low credit limits, so the card could be maxed out on a big day of holiday gift shopping!

Another thing to keep in mind is that branded credit cards are sometimes easier to get than traditional credit cards.

So if you’re trying to build a credit history, these can be a good option if you’re committed to having a low or no credit balance!

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