If you are an experienced credit cardholder, you must know that you are usually entitled to some reward program for the use of your card. The purpose of such perks is to constantly encourage you to spend more on your credit card. Why? Remember that your creditor exists and prospers at the thickness of your wallet, so their main goal is to make a most profitable and long-term credit card deal with you.

How do credit companies keep their custom? They keep you loyal by offering enticing terms and charges and they induce you to spend fabulous sums on their credit cards so you could gain as many rewards as possible.

But, as a rule, money is never too much, especially for credit card companies, and they always look for new loopholes to involve you into their system. One of their most powerful tools that has enabled them to raise revenues is their cooperation with department stores and discount retail stores which serve sort of channels for reaching out to your money.

Let's admit it, however, that it is convenient to be able to shop at your favorite store and get discounts and rewards there. So, department stores have joined credit card industry as important players and their credit card applications are a great temptation for customers.

Well, if you are one of those tempted and a store credit card is your next credit card deal, be ready to keep in mind that the deal will not cost you a penny. If you are a reasonable and responsible credit consumer, a store credit card's rates and charges may discourage you to apply.

Let's see what retailers usually offer you behind those bonus points, dollars, discounts and other rewards. No matter how enticing the store credit card may look, you should always remember that nothing is free and sooner or later they make you pay.

What should you look for in the first place when making a credit card deal with such stores as Nordstorm, Bloomingdale's or Banana Republic? No doubt - it's their hefty interest rates. And it's the interest rate on a credit card that defines the overall cost of the credit card deal.

What's the use, in this case, of the store credit card with lavish rewards and with a an interest of 16% to 21.6% when there are so many lowest rates credit card offer out there? That isn't the only bad news, however. Most of the retailers require that you charge a high-sky sum on their credit card just to get a reward certificate amounting to the feeble $10 - $ 25.

Point rewards program seems a bit more enticing but at a closer look and proper calculation you come to the same result - you pay your creditor more than they reward you for that. For example if you charge on your Banana Republic regular store card as much as $ 800, you are entitled to a special Luxe credit card.

This credit card offers customers the bonus of $ 25 if they manage to collect 500 points on their credit card. Considering that one reward point is given for each dollar spent, you have to spend $ 500 for a mere $ 25. This reward program does profit you, however, on special weeks when you earn two points for every dollar spent.

So, how do you like store credit card offer now? Well in fact, they may be a good deal but they benefit those customers who are disciplined and responsible. Cardholders who are never late on their credit card bills and who do not go over the credit limit are free from those gross credit card rates and fees , thus, enjoying the reward program to the full.

There's one "But", however, before you start enjoying the rewards - be ready to put thousands on your store card first. Remember, creditors depend on the thickness of your purse...

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