Watch for high interest rates on store credit cards
1 Video View·Nov 27, 2024
If you’re thinking about opening a new credit card at one of your favorite stores this holiday shopping season, you might want to think twice about the interest rate you could end up paying.
cards have lower standards for credit approval. They're easier to get. According to Bankrate.com,
the average retail credit card is charging nearly 30.5% interest. That represents a steady
increase over the last few years when it was below 25% in 2021. And these are just the
averages. Look at some of the highs. Big Lots, Michaels, Petco, all charging just under 36%
interest right now. JCPenney and MyWalgreens are just under 35%. Now a lot of these cards offer
cash back when you use them, which can be nice if you pay the balance off every month and avoid
those high interest payments and charges. And experts say beware of deferred interest deals
like no interest for 12 or 18 months. If you don't pay it off within that time period,
you can be charged retroactively for all the interest that would have accumulated from the
start. Good things to keep in mind as we're going into this busy season. Guys, I'll send it back to you.