We should all be used to a common phrase used at checkout counters by now: “Would you like to save 10% today by opening up a store charge card?” While it may be tempting to take advantage of a discount, in most cases, it’s a bad idea. Here are some reasons why:

Your Credit Report Gets Pulled

When you apply for any credit card, your credit report and score are pulled by lenders so that they can check your worthiness. Unfortunately, this impacts your credit score negatively by a few points. By spacing out your credit applications, you’ll assure that your credit score won’t take a serious hit. But many pulls in a short time frame can definitely bring your score way down. It may not be worth taking that kind of hit just to secure a one-time discount.

You Risk Paying Interest

The store (and associated credit card partner) are willing to give you a 10% discount today because there are certain a percentage of customers will carry the balance of the purchase forward and pay interest on it. That $5,000 set of furniture at a 20% APR and a 5% minimum payment will end up costing you $2,500 in interest alone if you only paid the minimum payment. Even if they give you $500 off (10%) your purchase, they are coming out ahead by $2,000 – plus the profit on the items you purchased!

You Make a Rushed Decision

The checkout counter is not a great place to make a snap decision about your credit. Since your credit score is one of the most important numbers in your personal finance life, you want to spend time thinking about the choices that could impact it. If you shop at one place very frequently and you need a credit card anyway, it may be logical to take advantage of their card. But you should avoid making a rushed decision when it comes to a store card.

Check out the rest of Moolanomy’s article over at 6 Reasons Not to Apply for a Store Credit Card.