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Q: Do the charge cards I get at stores count as real credit cards?

A:

Yes. Store-brand credit cards, like the ones Macy's and J.Crew offer, function just the way those from the likes of Visa do. Retail stores use the cards as a way to encourage customer loyalty and big-ticket purchases by offering perks like discounts, free delivery or scoops about upcoming sales. While the savings might be useful if you do a lot of your shopping at a particular store, you should also know most store-brand cards have very high annual percentage rates (APRs) — significantly higher than “normal” credit cards — as well as steep late fees if you are behind on a payment. Even if you are diligent about paying your bills on time, you should know that applying for multiple store-brand cards can also hurt your credit score since credit agencies could count new applications for credit against you.

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