1. How’s your credit score?
Store credit cards generally don’t have high limits and you don’t usually need excellent credit to get approved. It’s possible for some people with fair credit to get approved with some cards. But if your credit score is under about 580, it might not be wise to apply for a store credit card.
Every time you apply for a new credit card, the issuer runs a hard credit inquiry on your report. This can drop your score a few points. It’s not a big deal if you get approved, but if you’re denied, you just lowered your score for no reason. If you have any questions about eligibility requirements, you can always reach out to the card issuer to learn more about what kind of credit score you need.
2. Have you applied for any other credit cards recently?
It’s usually best to open a new credit card no more than once every six months. This will limit the number of hard inquiries on your report. It will also help your average account age, which also influences your credit score.
If you have one or two credit cards that you’ve owned for years and then you open a few new store credit cards to help you with your holiday shopping, your average account age will drop significantly. And your credit score will follow suit.
3. What fees will you have to pay?
Many store credit cards don’t charge annual fees, but it never hurts to check the terms to make sure you won’t pay just to own the card. You should also look at the card’s annual percentage rate (APR), especially if you think you might carry a balance. A high APR could cause you to rack up a ton of interest charges, and this could easily negate any benefit you get from the card’s perks.
You can find this information in the cardholder agreement. This may be available on the card issuer’s website or you can reach out to the retailer or the card issuer directly for more information. Keep in mind that the APR you’re offered will depend on your credit score. Those with higher credit scores generally receive lower interest rates.
