10 Percent Off – But You Could Pay In The End

"Would you like to open a store account and get a special discount today?"  We've all heard the offer.  But those big discounts upfront may bring you big headaches in the end.

Experts say there are some benefits to signing up for that new card including immediate savings, exclusive shopping days, building a credit history, and other promotions like free financing.

But your credit rating could take a hit every time you open a new line of credit. 

"It's goes into your credit credit report and there's a check on it and it can impact your credit rating for a short period of time," said financial expert Brenda Brinz VanDeWeghe.

That can not only affect your chance of getting a car or home loan, but it can also hurt your chances of getting a new job. 

"Today, a lot of employers are running credit checks on their new employees.  So you need to have good credit for a ton of reasons," VanDeWeghe said.

She recommends the following advice to stay out of credit card trouble:

  • Have two bank cards:  One for primary use, the other as a backup
  • Pay it off every month
  • Don't carry a balance more than 30 percent of the card's limit
  • Walk in the store with online coupons to avoid being tempted to pick up another card
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