The opportunities that consumers have for retail credit card financing will obviously differ from one store to another, but as we get nearer the 2011 holiday season there are some consumers who are considering a retail credit card as a way to make purchases, which may come at relatively low interest rates as some stores are attempting to attract more consumers in the coming months. Yet, these new offers on retail credit cards are not always going to benefit a buyer as even a low rate or even no interest for a set period of time on a credit card is a major draw for some, like other credit cards that are advertised in a similar fashion, consumers are being cautioned to read the fine print.
Essentially, retail stores can offer either a credit card or financing that comes with certain conditions, which again may be attractive to some consumers as it could allow these men and women to make a purchase and, upon meeting certain payment requirements, not have to pay any interest or pay only a small amount of interest on whatever they have bought. While revolving lines of store credit can be useful for some, offers for this particular type of financing are not always what they may seem, as some stores will have strict requirements that consumers must meet before optimal conditions remain on their card, or there are situations where consumers may essentially be offered a financing opportunity that will, in essence, only be available if they pay off this debt in a specific period of time.
Furthermore, consumers who fail to honor these financing agreements, meaning if they fall behind or do not pay off their debt in a set period of time, may see retroactive interest-rate costs or penalties incurred, which would obviously be a financial setback that would have otherwise been unforeseen as these consumers thought they were going to be able to purchase an item with no additional costs. Yet, some stores may also charge annual fees or only offer an introductory interest rate that is attractive to a potential buyer, and if a cardholder plans to carry a balance on a retail store credit card, the high interest rates that may be associated with some would obviously lead to higher overall costs as well.
It’s because that some consumers are looking into these opportunities in the hopes of financing holiday purchases in the coming months that financial advisers are cautioning these men and women to look at factors like prepayment requirements, interest rates, and annual fees, but also to be aware of certain drawbacks that may come, like these retroactive interest payments that may be added to the overall repayment obligation a consumer has if they miss a payment or happen to be late.
Obviously, some consumers may already have an unsecured line of credit that can be used to make certain purchases, so pursuing one of these retail credit cards may not be in their best financial interest but again there are some retailers that do offer cards that come at an affordable rate and have been useful to shoppers that comes to making certain purchases or purchasing during specific times of the year. While the decision to get a retail credit card will be solely a personal choice that a consumer must make, it should be remembered that while some of these cards can be helpful and even beneficial, in terms of rewards that may be offered, for certain shoppers lines of credit from a retail establishment must be carefully researched so that they can avoid excessive debt related to purchases on these particular forms of credit.