Consumer Credit Card Debt - Gas Station and Department Store Credit Cards

Once you have reduced or eliminated your credit card debt, you may wish to rebuild your crediting rating. To do that successfully, you may want to try maintaining a new credit card, to show future creditors that you are now in control of your finances. This can usefully be done with store cards or gas station cards; but always remember, you must keep up your payments and make them on time or early. >>>> continued below

What Are The Benefits Of Gas Station and Department Store Credit Cards?

If you are trying to rebuild your credit, it is possible that gas station and department store credit cards are the answer you’re looking for. Why should that be? These types of credit cards are generally easier to get than the standard bank issue credit cards; so, even if your credit report is not perfect, you may be approved for a gas station or store card.

It is very important to remember that you are using this new store or gas station card to rebuild your credit standing and report. If you do not keep that in mind, you could quickly find yourself in debt again. Department stores filled with all sorts of goodies can be a temptation, can’t they?).

Once you have been approved for your new store card, you should make every effort to pay off the balance in full each and every month. These types of cards are even more expensive than other credit cards, and typically have higher interest rates. Allowing balances to roll over each month can cost you a lot of money! Obviously, you should pay on time, and never, ever allow a payment to be late. If you think that you’ve waited too long on a department store credit card, simply go to the store and pay your bill in the customer service department. 

Just because these types of cards are easier to get, do not be tempted to get many of them. The main purpose is to rebuild your credit report, not swamp yourself with new credit commitments that may drag you back in the mire. Having a lot of new credit sources of this nature will not help you later if you want to apply for a more substantial loan, such as car or mortgage.

Another thing to remember is that just because these cards are easier to get, that doesn’t mean that you should have tons of them! When a potential lender looks on your credit report and sees a lot of credit already extended—even if it’s just one of these cards—they will likely pass on your request. Stick to one card, maybe two. But use them to build your credit report. They are also good practice for you in keeping credit under control

Things to consider when applying for gas station or department store credit cards

1. Most people regard gas station credit cards as only good for purchasing gas. In fact, you can reap other benefits also. For example, what would happen if your car broke down, but you didn’t have the cash to get it fixed? With a gas station credit card, you could simply charge the amount of the repair to your card. In addition, when travelling you could use the card to eat out (most gas stations in remote areas have restaurants), or simply use it to buy snacks, suntan lotion or whatever else you need on your trip. Finally, you may be able to get discounts on travel, hotels or rental cars, and car insurance when using your gas station credit card. The key is to shop around, at the start before you choose, for just the right card that will offer you the most benefits.

2. A department store credit card can offer great benefits as well. Just imagine everything that a department store offers; appliances, rugs, furniture, clothes, jewelry, tool and cosmetics, to name just a few. You may qualify for discounts and special offers. But remember: DO NOT get too carried away — after all the point is to build your credit, not go further in debt, remember? Use this as a test for yourself, a test that you MUST pass.

Again, the bad thing about these types of credit cards is that the interest rate you pay will be higher than a bank issued card. But if you watch your charges, and then pay them off every month, this should not be an issue. Pay them off on time each month, in full, and you have a minimal problem. You will also learn how good it can feel to pay off all outstanding credit each month. That shows you are well in control of your finances.