Shop wisely when it comes to store credit cards

Associated Press

Store credit cards may sound tempting with their discounts and loyalty incentives, but paying this way may not pay off.

A new report from CreditCards.com found that store-branded credit cards are charging record-high interest rates. The average store card charges 23.84 percent, much higher than the national average of 15.22 percent for all credit cards.

Retailers often lure consumers to these cards by offering a discount, access to special-sales events and more. But be sure to read the fine print.

It may make sense to use one of these cards for a large purchase or if you are a regular shopper, but only if you can pay off the balance in full. Otherwise the cost of interest charged will far outweigh the benefit, said Matt Schulz, CreditCards.com’s senior industry analyst.

If you want to make the most of your purchase, consider a traditional card that comes with its own perks.

There are a number of cards that offer cash back or other rewards that may rival or beat those of store cards.