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What to know about credit card debt
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True or false: You should always sign up for a store credit card if they offer an initial discount.


Store credit cards often seem like a good deal, but be sure to closely read the terms and conditions before you apply. Store cards can have higher interest rates and different repayment terms than bank credit cards, which could wind up costing you more than you saved with the initial discount.

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Some experts recommend that your overall credit utilization rate should be no more than what percentage of your total available credit?


When your overall credit utilization rate is more than 30 percent of your total available credit, it can negatively affect your credit rating.

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Key Takeaways

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  • Try not to carry debt on a credit card that’s more than 50 percent of its credit limit
  • Paying the minimum on a credit card balance can ultimately cost you more in interest alone than the amount you originally charged
  • To keep your credit score healthy, pay your credit cards on time when possible
  • Store credit cards have some benefits, like discounts, but they can also have downsides, like higher interest rates that may offset those discounts
  • Find out all the details before applying for a store card, such as hidden fees or interest rates that increase if you carry a balance from one month to the next