If you are a frequent shopper then you might have noticed that the major retailers offer department store credit cards. These kinds of the credit cards can be operated through one’s accounts with the major banks or the processing companies. They have many similarities to the standard credit cards.
Working On the Store Credit Cards
Store credit cards as the name suggests are they are specifically meant for the stores. So, the customers can use them only there and no other places. The cards are limiting because of the use restrictions imposed on them. So, as of the limited use, the stores have modernized them to the branded credit cards. These are now attached to particular stores and offers special discounts or gifts to those who carry them to the stores whenever they receive them.
Responsibility of Banks
It will be better for you to know that these cards are not given directly by the stores. Though it has the logo of the store the accounts are managed by some banks who take the responsibility to offer easier and cashless shopping options. The banks also set the credit limit of the cards. They are also in charge of administering the account and handle the default cases.
Profits Earned By the Stores through These Cards
When you are choosing the credit cards the stores gets a certain amount on the basis of the purchases that you have made excluding the prices of the commodities that you might have bought. The department store credit cards providers also take a commission for the payment of the money to the departmental stores. Interests are also charged on the to the credit card owners for the debt they have taken. If they make a late payment for the debts the banks or the credit card providers also charges penalties and fines as against them.
Getting Approved For the Credit Cards
Nowadays getting approved for acquiring a credit card is relatively easy. Things that you should be maintaining are as follows:
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- Firstly, know your credit scores. Good credit scores make the process easier for you.
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- Try to limit the debt as much as you can. This means that the more debt you take without calculating your capabilities the more you would face difficulties in repaying them.
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- It is advised by the experts that you should never apply for the first offers that you get to find. You should do your own bit of research before finalizing your decision.
- When you are making the application for the credit cards do not forget to include your income in that. This will help the card providers to analyze your creditworthiness.
In order to get your credit card, you need to apply to the banks or the financial institutions with whom the departmental stores have tied up. Even if you are not above 18 years of age you can still make a plea for the cards if an adult of yours adds you as an authorized user of their cards. Using the department store credit cards you will have the freedom of purchasing anything that you would like.