Are Department-Store Credit Cards Worth It?
Department-store credit cards have their perks. Many have fantastic rewards programs and excellent financing offers. However, department-store cards tend to have sky-high interest rates, and deferred-interest financing can be dangerous. Before you apply for a credit card at your favorite department store, here's a rundown of the pros and cons.
Many department-store credit cards are issued in partnership with one of the major payment processors (Visa, MasterCard, American Express, Discover) and can be used anywhere. These are known as co-branded credit cards. On the other hand, some are only usable in the store itself. These are also known as private-label credit cards.
Source: Fool.com