Often, people say no because they’re in a rush, or they assume there’s some catch in the fine print, and they just don’t want to deal with it. Sometimes, people do sign up to get those extra savings. Are the cards worth it, though? For the most part, they’re not. [This article was first published on The Simple Dollar in 2020. It was updated in March 2022.] Also: The best store credit cards This is especially important when you consider that bonus in comparison to the reward you’re already getting from your primary card. If the signup bonus is 10% off, but you’re already getting 2% or 3% cashback on your card, you’re really only getting a 7% or 8% bonus for the signup. The problem is that those final few purchases are usually very unplanned and poorly considered. If there’s a purchase that’s going to wind up being stuffed in a closet and forgotten about in a few weeks, it’s this one. If there’s ever an item you’re going to spend your money on only to find it in the back of the closet in a couple of months as you wonder why you ever got this, it’s this kind of last-minute purchase. You are far better off avoiding last-minute purchases, and these kinds of credit card signups strongly encourage you to make those kinds of unplanned purchases. Also: The best travel rewards business credit cards The truth is that there are many, many better rewards credit cards out there that will give you much better ongoing rewards than that. By simply finding a rewards card that pays well at most of the places you shop and keeping the balance on that card paid off every month, you’re going to accrue far more rewards over the long run by simply using that rewards card everywhere. In fact, given the small reward that many such cards offer, simply carrying a balance for a few months will almost always cost you far more than the initial reward was worth. Some cards offer an initial 0% interest rate to tempt you, but that teaser period is usually quite short, meaning that the overall savings are pretty small unless you are making a huge purchase. If you are considering signing up for a new card, simply having that new card at all is a slight negative because of that identity theft risk. The best reason to sign up for a store-branded credit card is if it offers a reward program related to that retailer that will save you more money than other rewards cards. This typically happens when you use that particular retailer a lot because it is your primary grocery store or gas station, or both. An example of this might be a Costco Anywhere Visa if you do most of your grocery shopping and gas purchases at a Costco and occasionally eat at restaurants. In that specific situation, the Costco card is very competitive. However, you should decide to switch to a store-branded card away from the checkout. If a clerk springs a credit card offer on you, just say no unless you’ve already planned to sign up for the card.
