Margaret Magnarelli, assistant managing editor at Money, recently published a piece that should remind us all of a moment we've all had when standing at the check out and asked if we'd like an added discount to our Nordstrom purchase if we would just complete an application for their store credit card.
It's a tempting moment. An added 15 or 20 percent off just to open a credit card. More persistent sales associates will tell you the card's account will be closed after only six months of inactivity. Even better, right? You can get a discount and in six months be rid of the credit card all together?
Wrong.
Margaret explains all the reasons why you should avoid the temptation of opening that credit account with your favorite retail store. Interest rates soar at an average rate of 23.23 percent for retail credit card, newly opened lines of credit count against your credit score (at least initially) and you might end up paying more than you would save on the original discount if you leave a significant balance on the card.
Don't take our word for it... Read the piece yourself.