Are Store Credit Cards a Bad Idea?

Whether or not you open a store credit card depends on your goals. Sergey Kolesnikov/Shutterstock

It’s probably happened to you. You go to check out at a department store or other retailer, and they tempt you with a discount—if you open a store credit card, you'll receive 30 percent off your purchase, or some other percentage.

You may think it’s a deal. Money is tight, and here’s a chance for a discount. But is opening up a store credit card good for you? Is it the right way to use your credit?

One-Time Discount

Some stores offer a percentage off your purchase. Or they could provide a flat-rate discount off a minimum purchase amount. And although some stores let you have that discount for the entire day you opened the account, it’s still a one-time discount.