For those who are just starting out in the money game, it is likely that there is no credit score attached to their name. This may make it difficult for these consumers to secure a line of credit, whether it be a car loan or credit card. Often times, applying for a retail card is the best way to establish one's self in the financial world, but there are plenty of ways that this can go awry.
Retail cards are credit cards offered by a specific store, only to be used for purchases at that chain. While this may seem intriguing, the store's only goal is to make money off of its customers and therein lies the temptation to overspend upon seeing card-related promotions and sales.
The main focus is to use the card responsibly – make your purchase and pay it off in a timely manner. Be sure not to carry a balance, as retail cards are infamous for their sky-high interest rates – some charge upwards of 30 percent, according to the San Francisco Chronicle.