Everyone that shops has heard the pithc.
You go into a store and you carefully select all of the items that you want while also making sure that you ca pay for it with the funds that you have available at that time. You go up to the checkout counter and the person asks you if you found everything and then after that they ask you about the stores credit card. Things like if you have one.
If you do not have a card with the store they will try to get you to apply for one. Most of the time you will be offered a discount if the account is approved. Less than 50% of all retail credit card applications are approved. Every time that you get declined for any type of credit your credit rating goes down.
The reason that stores want people to open their credit cards are simple. Every time someone uses their credit card they make more money. Every time someone is approved for a new account they make even more money.
Most retailers do not own their credit card but have a partnership with a bank that owns the credit department. This means that if someone were to decide not to pay their bill the retailer would not be out any money.
Published in: Personal Finance