Zero percent introductory period means that you don't have to pay additional interest when you use the store credit card to charge on purchases at the store. The downside is that if you don't settle the balance by the end of the introductory period, you will be charged with expensive retroactive interest every month. The retroactive interest is not charged by other regular credit cards.
The high interests will make it very expensive to pay back if you did not pay back the balance in full by the end of the introductory period. Survey shows that 0% store credit cards are even more popular than rewards credit cards in the USA. Store credit cards are worthwhile if you are confident that you have the income to repay the balance that is due every month in full. It is all right to apply for store cards once in a while but don't try to apply for too many in a short amount of time because it can cause your credit score to drop.
Having too much unpaid balance on the card can have a negative impact on your credit score. Card holders will get access to exclusive promotional deals. The benefits vary across the credit cards and you will have to do a little calculation to determine whether it is worthwhile. Some store cards offer better perks compared to other regular rewards credit cards. So, if you are a regular customer at the store and always buy lots of things from the store, it makes sense to apply for the store credit card. Some of the perks that frequently accompany a retail credit card are free shipping, coupons, and gift wrapping services that are free.
Most store cards don't charge annual fee so you will be saving money to use it for your shopping provided that you are not paying the interest by settling the balance in full. To get the most benefits out of the card, you must always spend carefully according to your means. If you have to pay interest for your shopping, the overall value of the store card will be reduced.
Store cards have less stricter requirements and most shoppers with low credit scores can get approved easily. If your credit score is very low and no bank would approve you, you can apply for a store card instead and use it to rebuild your credit score to an acceptable level before applying for a normal card. Retail credit card is a great way for rebuilding the credit score if you keep the balance to 20% - 30% to lower the debt to credit limit ratio. Store cards usually have a low credit limit of $300 so this means you must not let the balance be more than $90.
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