Clerks at most department stores or retailers often ask if you'd like to apply for a store credit card, pleasantly pitching special deals and perks that the credit card provides. Why not accept? How can you go wrong opening another account?
When you're tempted to accept a store card offer, think of two things – how you would use the card in the future and how opening the account will affect your credit score.
Financial Educator and Author Tiffany "The Budgetnista" Aliche suggests that people may misunderstand the risk associated with store cards because they don't understand how credit scores are calculated. Because of the relatively low limits of store cards, credit utilization (the amount of credit in use relative to your credit limit) is high. A higher percentage of credit utilization suggests higher risk to lenders, resulting in a lower credit score.
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from MoneyTips https://www.moneytips.com/store-credit-card-could-hurt-your-credit-score
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