Coupon 101: Department Store Credit Card Discount- Run Away from the Light!

My once little sleepy country suburb has gotten just downright fancy this week! Just down the road they have opened a massive shopping center with Lowes, Best Buy, Petsmart, Kohls, TJ Maxx and the now largest Super Target in Georgia. And those are just a few of the stores- more to come and tons of restaurants to boot!

We checked out Kohls tonight because they sent us a free $10 gift card. We didn't have 2 feet in the store before we were approached to open a Kohls account. Actually, we walked the entire store and were asked a total of 4 times to open an account. I know this is what they do but don't get sucked in!

They try to suck you in with an instant discount on your purchase. Great...take 20% off but charge me an interest rate that's probably over 20%! You apply because of the cloud the discount created in your frugal mindset and vow you will never use it but to get discounts, pay it off each month and never let the balance climb.

You may do that and stick to your guns- I know plenty of people that do. But... what if you don't? You just put another item on your credit report and that may be the difference between qualifying for a major, important purchase.

These credit cards have this magical way of talking to you when you are in the store. Let's say you go to Kohls to buy your child a pair of shoes. You budget that you will spend $50.00. All of a sudden- there's a huge sale and your child likes 2 pairs, you see some cute finds for yourself and a great pair on clearance for your better half. You calculate in your head and you are well over $120.00. That little piece of plastic in your wallet starts giggling in your head- "Use ME! You can save all the next month and pay it off no problem." That sounds like a plan and I bet if you went to Customer Service, they would give you a 15% coupon for your purchase. Now it's settled- you are using the card and paying it off when the bill arrives.

Before I go further- don't get me wrong. I'm not assuming everyone who reads the blog is living month to month or irresponsible. We certainly aren't but life happens and the best intentions can be thrown to the wind before you know it.

You wear your new, cute sandals and your child thanks you over and over for their awesome 2 pairs of sneakers. Husband is impressed at your find for him and you are on Cloud 9! Before you know it- your child is sick and you're sitting at CVS paying for a $75 antibiotic that you never saw coming. The next day, you get your HOA statement for your yearly dues and the pool is opening in a month. Your low tire pressure light suddenly comes on. The travel agent emails that another payment on your Disney vacation 9 months away is up. When it rains- it pours.

Now you have to start creative bookkeeping. And I'm saying that not because you don't have money but assuming you don't want to charge anything else. Which bill is the easiest to not pay in full and give yourself "just one more month" to pay it off? DING DING DING! The Kohls bill.

By this point, you've accumulated interest on your purchase. You are a good customer to Kohls! What do they do next? Keep baiting you in the store to purchase more. Your daughter needs new jeans- so you think "Let's go to Kohls- they are having a great sale!" To get the discount- you have to use the card. The process repeats itself. You are making more than the minimum payment and it's going to be paid off in no time. You get the mail a couple of months later and before you open it- you play the "balance game" in your head. "I bet it's about $200." Open it up and it's pushing $400. And you sit there trying to figure out how. That's why Kohls is so nice to list all your purchases for you.

This may never happen to you but it can before you realize it. Stores wouldn't offer credit cards if they didn't know exactly what they were doing and how to bait the average consumer into running up a balance. Just be careful and use wisely if you choose to get a card.

I still get the discounts at Kohls- I take my in-laws with me (and on Senior Discount day to boot for an additional discount) and they charge for me. They always pay the balance off each and every month so they don't mind. I pay them cash when we leave and we are all happy!

I didn't like this Kohls anyway- it's brand new and no clearance sections yet!