How many times have you bought something at a store, and the clerk asked you if you wanted to open a charge account and save 10 to 20% that day? It’s tempting isn’t it, particularly if you are purchasing a large number of items? But, stop and think before you say yes.
First, the interest rates on store credit cards are often higher than those from traditional sources such as banks. If you don’t pay off your card on time every month, you’ll lose the money you saved pretty quickly. Secondly, if you tend to apply for a lot of credit cards, your credit rating will suffer as a result. Lastly, do you really want all those cards to keep track of? Simplify your life, and only keep one or two.