![]() If you don’t, you may end up paying a tidy sum as interest charges. As a result, while paying off your credit card balance in full each month is ideal, it becomes all the more important if you get a store card. Compare the average credit card APR of 14.39% across MoneyGeek’s data set of over 2,200 credit cards with store cards that have APRs of well over 20%, and you’ll notice that there’s a considerable difference. It is common for even the best store credit cards to come with higher APRs than regular or co-branded credit cards. The Target RedCard Mastercard, for instance, lets you withdraw cash from ATMs, and you may use it globally without worrying about paying foreign transaction fees. If you get a regular or co-branded card, you have considerable freedom in where you may use it, especially if it’s linked to popular networks such as Visa and Mastercard. You cannot use this card to get a cash advance or transfer a balance from another card. For example, you may use the Target RedCard Credit Card only at Target stores. When you get a store card, you may use it only at stores that are part of the retail chain in question. Bear in mind that applying for a store credit card, much like a regular credit card, will typically cause your credit score to temporarily drop by a few points. Going forward, using your card responsibly and making all your payments on time helps you build your credit score. The lowest credit score you need to qualify for a store card depends on the retailer you select but usually varies between FICO scores of 550 to 660. Plus, you may qualify for a store card even if you have less-than-perfect or poor credit. The application process for most store cards is fairly straightforward, and you can usually expect a near-instantaneous decision. Several retailers encourage customers to apply for store cards during checkout by offering to link promotions to their purchases.
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