What you need to know about store credit cards

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When you’re out shopping this holiday season (or really any time of year), you’ll probably be asked if you would like to sign up for a store card. With offers like no down payments and no interest for a certain amount of time, a store card might sound like a great idea — but not so fast!

Before you sign up, you need to make sure you know what you’re getting into!

Read more: What you need to know about store credit cards

What to know about store credit cards

You may get what looks like a big discount on your purchase when you use a store card, but when those sign-up benefits stop and the interest kicks in, it can end up costing you big time!

According to a report from CreditCards.com, the average store credit card carries a 23% interest rate — compared with an average interest rate of 15% for all credit cards. Some store cards carry rates as high as 29%.

So if you’re someone who only makes the monthly payments, you might want to reconsider applying for a store card.

However, there is one store card that is an exception to the rest. The Target RED card gives you 5% off all your purchases and free shipping on most orders from the Target website.

Read more: A type of debit card that Clark actually likes!

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