Recently when filming a segment for 60 Days to Change, something became abundantly clear. We, as trusting Americans (or something like that), take financial advice from people we shouldn’t. We tend to take advice from anyone with a cash register and a credit card application. If you step back and think about it for a second, why would you let a teenager working a checkout lane talk you into opening a credit card? Yet, it happens every single day. Opening a store credit card rarely makes sense. Many people try to justify it by explaining that they are simply trying to save 10-15% on their purchase.
Stores know that you are most likely going to carry a balance on their card. Otherwise they wouldn’t offer them to you. They are playing the numbers game. They are counting on your lack of discipline. However, don’t try to prove them wrong by taking out a card, and then paying it off. These are the days of protecting your credit score. Opening and closing lines of revolving credit is a great way to destroy your score. Â Remember, retailers are not your financial partners. They are trying, in every way possible, to get you to spend your money with them. They don’t care about your financial life. Don’t think that the 10-15% savings from opening a store card is an attempt to help you. It is an attempt to take your cabbage.
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About Green Candyâ„¢
Green Candy™ (www.GreenCandy.com) is an online financial assessment tool that helps Gen Y-ers and Millennials get on the right financial track before the “debt hits the fan.â€Â Introduced by radio personality, comedian and financial expert Pete the Planner (www.PeteThePlanner.com), Green Candy’s â„¢ various “pods†allow users to assess their financial health and competency in common areas such as Debt, Budgeting, Investing, Charity, Risk Management and Major Purchases, as well as in areas unique to Gen Y. A subsequent series of targeted worksheets, podcasts, tip sheets, and action plans guides them to the financial promise land.  Green Candyâ„¢: Get in control before the debt hits the fan.  Â
About Pete the Planner
Pete the Planner (www.PeteThePlanner.com) is expert financial planner Peter Dunn’s super-saving alter ego. Peter is an award-winning comedian and rising star in the financial world. Named one of “Indy’s Best and Brightest†in finance in 2007 by KPMG, Peter was also declared one of NUVO magazine’s “30 under 30 to Watch in the Arts†for comedy.  Peter is the author of What Your Dad Never Taught You About Budgeting (2006) and is the host of the popular radio show Skills Your Dad Never Taught You on News Talk 1430 (WXNT). He blogs regularly at www.petetheplanner.com/blog. Pete appears regularly on Fox News and Fox Business as well as various CBS stations. His newest book, 60 Days to Change, is due out in June.
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I completely agree with not taking financial advice from checkout clerks. However, I’m not sure I agree with not having store credit cards. If there is a specific store that you buy a large percentage of your purchases from, then it can certainly make sense. For example, with 3 boys, we spend a fair amount of $s at Kohls. We buy all of their clothes there and get significant discounts by using their credit card. Also, Kohls allows you to pay off your credit card at the cash register. Thus, everytime we shop, we charge everything to our store credit card first and then immediately pay it off while still in line. You can do this at many stores. It’s an easy way to save 10-15% everytime you shop.