Department Store Credit Cards

Keeping customer information secure is a top priority for all of us at Department Stores National Bank (”DSNB”), the bank that issues your credit account. This notice tells you how we collect, handle and disclose personal information about you. If you want to limit our disclosing this information, please see Your Privacy Choices and a toll-free number to contact us in paragraph E of this notice. If you are a joint accountholder, we will accept your privacy choices from either of you and apply it to the entire account. This notice also applies to applicants and former customers as well as current customers unless we state otherwise. This notice replaces all previous notices to you about information-sharing practices on your Account.

If you are trying to rebuild your credit, it is possible that gas station and department store credit cards are the answer you’re looking for. Why should that be? These types of credit cards are generally easier to get than the standard bank issue credit cards; so, even if your credit report is not perfect, you may be approved for a gas station or store card.

It can be very tempting to apply for department store credit cards. Each time you make a purchase at a store in the mall, a salesclerk is likely to inquire whether or not you would be interested in saving 10% (or sometimes even more) by opening a store credit card. Without thinking, you might jump at the opportunity to save a few bucks. Don’t be so hasty.

Once you get a department or gas credit card you need to use the credit card regularly and always pay your bill on time each month.  If you pay late even once you have seriously damaged your credit rating and won’t be able to get a Visa or MasterCard, perhaps for more than a few years.  To avoid the high finance charges associated with department store and gas cards, always pay your bill in full each month.

Interest rates on department store credit cards are often much higher than a Visa or a Mastercard. So pay your bill in full every month and on time! Mail a check at least a week before the due date. If you’re paying online, allow at least two days for processing. After months of late or non-existent payments, your account will get sent to collections. You don’t want that on your credit report. Remember, there’s no need to borrow money to build credit, so pay the entire balance every month. In fact, your next credit card should be one that pays you, either in the form of cash or gift cards.

Department Store Credit Cards Have High Interest Rates

If you are trying to get out of debt or have been relatively debt free, you need to stay away from department store cards because they frequently have the highest interest rates. If you forget to make timely payment, your purchase discount savings could quickly be negated by high interest charges. Don’t fall into the discount trap.