As holiday shopping season kicks off, Clark Howard warns shoppers to avoid store credit card offers

As the holiday shopping season kicks off, consumer advisor Clark Howard warns shoppers to avoid store credit card offers due to high interest rates.

Store credit cards, often promoted during the holiday season with promises of discounts, carry interest rates that can exceed 30%, making them a costly choice for consumers.

“It’s now at the highest interest rate ever on average, over 30%, a lot of store credit now 36%,” said Clark Howard, emphasizing the financial burden these cards can impose.

Howard advises consumers to decline offers for store credit cards, even when tempted by immediate savings at checkout. “When they say, Wouldn’t you like to save 10% on your purchase today by taking out a store card? The answer politely is, no thank you,” he stated.

The risk, Howard explains, is that consumers may not pay off their balances quickly, leading to significant interest charges. “You think you’re gonna get the thing paid off, you don’t, and then you’re charged that huge interest,” he warned.

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