What are the pros and cons of opening store-branded credit cards for my holiday shopping?
A. The primary advantage is that familiar pitch you hear this time of year, especially when you’re carrying an armful of gifts: “You’ll save 10 to 15 percent off the day’s purchases if you open a store credit account.” You may also be told there will be no annual fee, special “cash back” rewards and notifications about sales down the road if you hold the store-branded card. But before you sign up, recognize the potential pitfalls. • With interest rates as high as 25 percent, the one-day savings can quickly vanish — and then some — if you carry a balance. If the store card touts a “no-interest” period, consider the date that promotion ends and your likelihood of paying off any balance by then. If you don’t pay, you could face steep interest charges dating back to the purchase date. • Many store cards are co-branded with a Visa, MasterCard, American Express or Discover logo for use outside the store. But you won’t necessarily get generous rewards at other retailers. For instance, L.L. Be
