Opening a store credit card is blessing and a curse. High interest rates, penalties for going over limit and other hidden fees can cost consumers thousands of dollars a year if they are not careful. Since most consumers open store credit cards to take advantage of no interest financing, they end up closing the card right after paying off their big ticket item and do damage to their overall credit score without so much as a thought. In other cases, financing terms are not fully disclosed or inquired about, and the consumer ends up paying much more in interest than they bargained for.

However, opening a store credit card is not all bad. As long as the consumer knows what they are getting into when they sign up, they can take advantage of financing offers and even a discount in most stores off their first purchase with the card. Many consumers merely sign up for the card in store without so much as reading the terms and conditions, not realizing the high interest rate tacked along with the card.

Always read the terms and conditions before filling out an application. A store is required by law to give them to you and give you the change to read them thoroughly, no matter how long it takes. By reading this paperwork, you know how the card works, what the fees are and if there are any other risks involved in opening the account. Keep in mind that the store itself has very little to do with the credit card and issues that may arise and may have to refer you to the issuing back if you have questions or concerns.

Weigh the pro and cons of opening a store credit card wisely. Determine if your financial situation, and credit score, warrant opening another card. If you can pay out of pocket, of even put some cash down upfront, you are better off in the long run than potentially damaging your credit if something goes wrong down the line. If you can opt to take out credit protection on the guard, it may be a wise investment to counter anything that could go wrong with making payments.