QUICK TIP: How much will your store credit card save you -- or cost you?

SAN FRANCISCO (KGO) -- Did you apply for a store credit card this past holiday season? Michael Finney has another 7 On Your Side Quick Tip for you!

If you applied for one of those cards, you are not alone. 37% of us applied and 94% of those were approved for a store credit card.

Now, why did we sign up for one of these cards?

About 50% say they signed up because they came with a discount they couldn't get unless they got the card. Around 25% of us say they got the card, because without it, they didn't have the money to buy gifts.

And then, about 15% say they bought the card because they felt pressured by the cashier.

Now, how much are those going to actually cost us? Well, the average store card now has an interest rate of about 25%. And about 25% of us say we can pay off the card before the first payment is due.

So it's not gonna cost us anything. But the 75% who say they will be carrying a balance... At 25% interest, that new card is gonna cost them plenty.



Take a look at more stories and videos by Michael Finney and 7 On Your Side.

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