Shopping cards are pre-loaded cards that could serve as a favorite way for consumers to earn discounts on purchases. Many of these cards come preloaded and are prepaid debit cards but a few are actually credit cards which have an impact on the users' credit rating.
Shopping cards are commonly issued by chain stores who partner with a local card issuer. These cards are also similar to those issued by larger card issuers such as American Express who have pre-loaded gift cards for business and personal use.
Reason #1 - You incur less interest & charges
A shopping card serves you with no interest rates, and APRs to worry about. The bulk of shopping cards come pre-loaded meaning you'd have to purchase them in full according to the card denomination. Preloaded shopping cards could be bought and kept till that period you feel comfortable with using them (before doing this check for any expiration dates).
Few shopping cards such as the Global Gold Card and USA Optimum Gold Merchandise Credit Card offer a line of unsecured credit to interested consumers. Although these cards are very much restricted in use, typically only useful with a handful of partner retailers, cards such as these will charge you an interest rate and other charges as dictated by the card agreement.
You might be interested in shopping cards providing credit as they're more likely to accept those having limited credit, and are a tool for persons who want to improve their credit scores since they report to the credit bureaus
Reason #2 - You're less exposed to Identity Theft
Its common knowledge a credit card exposes you to identity theft. Most shopping cards come on a local card network and from the perspective of a shopping card, you're forced to purchase from a reduced number of retailers meaning your personal information is placed with and processed by a reduced number of independent parties. As of today Identity theft is one of the largest problems we've yet to overcome.
Reason #3 - You're likely to stay within budget
Preloaded shopping cards are prepaid meaning when you've used it, you're actually used it up. On a reloadable shopping card you'd have to purchase additional credit otherwise it becomes virtually useless to you. Shopping cards offer a unique benefit similar to what prepaid credit cards offer. These cards will encourage a budget conscious individual to create a budget and stick to it.
Reason #4 - They could help build your credit history
Shopping cards that offer credit lines such as the Horizon Gold Credit Card, Global Gold Card and others claim to report card transactions to the major credit bureaus. Card users using these sorts of cards can improve their credit ratings over time if they stay within the allotted credit limit and are timely with balance payments.
Reason #5 - A much better option compared to having multiple credit cards
In the U.K., the credit card ratio is a little higher than 1:1 with 67 million credit cards servicing a population of 59 million people. Also in the United States, many household can boast of having at least 5 or more credit cards. Having multiple credit cards isn't all that bad if each is used appropriately but what happens when you can't control your excesses? - A shopping card becomes your best alternative.
Choosing the right shopping card will assist you with your budget while shielding your finances from high interests, and credit card charges. Besides, there's a reduced risk of you running up on credit card debt.
Before going for a shopping card always go through the details (read the card agreement). Ensure it's what you want, check for monthly service fees, and application fees. In unique cases, hidden fees may apply. It's also advisable to seek the opinion of current card users. Shopping cards that offer credit lines will charge an Annual Percentage Rate (APR) on purchases and other applicable transactions. These cards will almost always have a positive or negative effect on your credit rating based on how you've used them over a period of time.
Searching for Shopping Credit Cards
We advice you to compare, read reviews and apply for a shopping credit card on the following page -- Shopping Cards.
More Shopping Cards Resources
You may also consider visit the pages on the following websites: