Department Store Credit Cards

Most department stores offer there own lines of credit in the form of a department store credit card. Department store credit cards have high interest rates and very strict repayment terms. The purpose of a line of credit with a department store is for you to shop solely at that store. With each department store credit card that you acquire, your credit report shows another open line of credit.

Regardless of whether or not you have an outstanding balance with the department store, your credit report will still show that you have a line of credit for however much the department store has authorized you to use. When attempting to take out a mortgage or car loan, having too many open lines of credit can work against your chances of being approved for a loan that you really need, the balance that you owe on your multiple lines of credit makes no difference to banks or finance companies. To ensure that your credit report is not bombarded with open lines of credit and credit cards, experts say that carrying two different credit cards is most that any person should have.

When you have an abundance of credit cards or lines of credit, you also open yourself up to identity theft. If you credit report is constantly getting pulled for credit card offers and department store lines of credit, anyone could use your information to obtain several credit cards and it wouldn�t raise any radars, because it would not be abnormal for your credit report to be used that way.

Contributing National Payday Staff Writer

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