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Store credit cards (Circuit City)
HyperAquaBlast
Registered User regular
Registered User regular
So I'm planning on getting an LCD tv from Circuit City today. They have a whole 18 months no interest thing going on on purchases $999 and up with the card. Should I get one for this purchase?
I have a bank of america credit card for about 3 years that I just have for extreme emergencies and on a bill payment that only accepts credit. I use my debit card for most other things since I rather pay fully then owe over a couple months. My plan is to use this card for the tv then cancel it once I'm done with the 18 months payments. Is this wise? I believe my rating is good since my BoA payments are always on time.
I have a bank of america credit card for about 3 years that I just have for extreme emergencies and on a bill payment that only accepts credit. I use my debit card for most other things since I rather pay fully then owe over a couple months. My plan is to use this card for the tv then cancel it once I'm done with the 18 months payments. Is this wise? I believe my rating is good since my BoA payments are always on time.
HyperAquaBlast on
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I wouldn't cancel the card once you've paid your purchase off though, opening and closing lines of credit both give your credit score a slight hit. Having the card, and paying off the purchase before the 18 months are up will have a positive effect on your credit score, of course.
Just be sure you'll be able to pay it off in less than 18 months. It's as simple as dividing the purchase price by 18 (or 17, if you want to really be sure you won't bump the deadline). As long as you can come up with that amount of cash each month, there's no reason not to really. The "minimum payment" that will show up on your first bill is, of course, not the amount you'd need to pay each month to have it paid off in 18 months.
I remember reading somewhere that opening up a store credit card automatically knocks 20 points off you credit score......googling now.....
Yup here it is:
http://lifehacker.com/359610/avoid-store-cards-for-a-better-credit-score
So yeah, take that into consideration before you apply
Those are store specific credit card(like Kohls has), Visa or MC endorsed store cards are just fine. Circuit City's card is Visa endorsed. I got one when I bought my TV. Just make sure you pay it all off before the 18 months is up because they will retroactively charge you interest for those 18 months.
Hold on to it. Close credit cards dents your credit score. I haven't used mine since I bought my TV, although I am looking at speakers now and I may use it on those.
I don't know the specifics of the card - do they give you rewards back or anything for use?
To be honest, I use credit cards for most of my purchases now, but pay the full balance every month - builds credit faster, gets rewards (even 1% back isn't horrible if you're putting 10k of typical living expense-type stuff on there per year), and as long as you have the self-control to use it for things you'd just pay with debit card anyway you won't get into debt/interest crap