KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
When you're tempted to sign up for a retailer's credit card at the checkout counter, the promise of an initial discount or future perks might seem like a great deal. But beware: that cute blouse or new gadget could end up costing you far more if you don’t pay off your balance in full each month.
A recent study by Bankrate has found that interest rates on store credit cards have reached their highest levels since the firm began tracking them in 2008. The average rate on these cards now stands at 30.45%, a significant jump from 24.35% in 2021, and far above the average rate for general credit cards, which is around 21%. Some store cards, like those from Academy Sports + Outdoors, Petco, and Big Lots, are even hitting 35.99% APR.
How High Rates Could Impact Your Wallet
Let's break down what this means: If you sign up for a store card and make a $1,000 purchase with a 20% discount, you'll pay $800 upfront. But if you carry that $800 balance at an APR of 35.99% and only make minimum payments of $35 per month, you’ll end up paying $570 in interest over nearly 3.5 years. What you thought was a good deal at $800 actually ends up costing you $1,370.
Retail cards can also sting you with retroactive interest if you fail to pay off a 0% promotional balance in full before the offer expires.
Some Store Cards Aren't As Bad
Not all retail cards come with sky-high rates. For example, the Amazon Secured Card offers a rate as low as 10%, and some cards like the Costco Anywhere Visa by Citi are more in line with general credit card rates.
Should You Say No at Checkout?
According to Bankrate’s senior analyst Ted Rossman, “The best way to use any credit card is to pay in full each month so that you avoid interest.” And while that initial discount or perk might seem enticing, it could lead to a financial trap if you’re stuck paying 30% or more in interest for years to come.
However, for those who are disciplined about paying off their balance every month, some retail cards might still offer great value. For instance, cards from Amazon, Best Buy, and Target offer 5% cash back on purchases, which could be more than you'd earn with a standard credit card.
So before you say “yes” to that retail card offer, consider whether the savings today are worth the potential high-interest payments tomorrow. Sometimes, saying “no, thank you” might be the best choice for your financial health.
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