It's Saturday morning and I'm doing my typical weekly peruse of the local mall. I've managed to find a couple of purchase-worthy items (on sale, no doubt) and I approach the register, bargains in hand:
"Hello! Did you find everything OK?" asks the cashier.We've all had this experience before - the dreaded credit card plug coupled with tempting savings. The question is: Are they really saving us money, or do they encourage shoppers to spend more?
"Yes, thank you."
The cashier asks, casually, "Did you want to save an extra 15% and open a rewards credit card with us today?"
The bargain side of my brain says, 15% off - YES! while the common sense side says, DON'T. YOU. DO IT. "Um," I start to reply, "I'll pass, thanks."
When I worked in retail as a sales associate, the only thing I hated about the job was pushing credit cards down customers' throats. I was trained to mention the card and it's "benefits" to every single customer at least three times (yes, that's three times per customer). We would even have competitions with the other stores in our district to see which store could sell more cards. At my store, where everyone wore headsets, we'd hear a manager tell us, "Did anybody tell the lady in the blue shirt about the card? Make sure you mention the 2% cash back!" Just thinking about it gives me anxiety...
Are retailers really concerned about it's shoppers getting a good deal? Of course not! The goal of any retailer is to make money, not to keep their customers' wallets full and they don't care if you get into some serious debt all the while earning a measly 2% "cash back" (i.e. store credit). In my time as a sales associate, I learned that card members spend, on average, $60 more per visit than non-card members and they also visit the store more frequently. This doesn't even mention the 25-30% APR most store cards carry and the impact the hard inquiry makes on your credit score. The one-time 15% off and 2% cash back don't sound too appealing now, do they?
Unless you're borderline obsessive with a certain brand and you're going to spend the money regardless of whether or not you have the store credit card, don't even bother. My advice to both consumers and retailers is to just say no! It is so nice to walk into a store and not be harassed about opening a card that I do not want or need.
Retailers, please stop pressuring your employees to make card quotas; it's tiresome for both the associate and the customer. Offer me a plain ole rewards card though, without the hassle and risk of a credit card and you'll get me every time.
What do you think about the growing store-specific credit card malady?
I only pay on cash (is it right?? sorry my english, I'm brazilian). No money I don't buy anything. No credit cards, also. It simplifies my life.
ReplyDeleteThat's the way to go! Thanks for sharing!
DeleteI'm pretty sure I spend a crapload more (see how technical I'm getting?) when a store has a regular rewards card, but without the nasty interest rate. It's a win-win, isn't it? Why don't more stores have plain rewards cards?
ReplyDeleteMy favorite are the movie theater rewards cards, like the Showcase Starpass. Points for every dollar spent that earn you free popcorn and tickets. And you earn points on concessions you buy as we'll as the pickets. Score!
Yes, I'll admit it too - I do spend more even if I just have a regular rewards card. I use my drugstore rewards cards the most since they have the best deals on stuff you actually need or were going to purchase anyway (ok, or just stuff you THINK you need!)
DeleteThis is really interesting, particularly the insight you gleaned from working in retail. I always say no to the cards, unless it is purely a rewards card--no private info given out and no interest/spending requirements. Once, when I was much younger (early teens) a store managed to get me to sign up for their card by selling me a bill of goods and telling me it wasn't a credit card. Turns out it was--even though it had no spending minimum/fees. The problem? If you cancel a credit card or don't use it enough it can effect your credit score. So, while the card itself had no penalties it could effect my long-term ability to spend/take out loans etc. There is so little education about credit cards and credit scores for young people, the very people these cards target--a pretty unethical cycle if you ask me.
ReplyDeleteAnyway great piece and congrats on the LALM mention!
Best,
Rachel
www.thecuratorial.com
Thanks, Rachel! Stores often make it very easy and deceivingly attractive to open a credit card. When I worked in retail, I once had a lady apply for a card after telling me she recently declared bankruptcy. Sounds pretty logical, right?
Delete