Before you sign up for a store credit card, know what you’re getting into

Associated Press

NEW YORK (AP) — With holiday shopping season around the corner, experts recommend caution when your favorite store offers you a credit card. According to the Federal Reserve, outstanding credit card balances reached $1.14 trillion as of August 2024, meaning credit card debt is increasingly a concern for millions of Americans. Bankrate found that the average store-only credit card has an average annual percentage rate of 30.45%, significantly higher than the average APR of 20.78% for all credit cards. The APR is how much interest you’ll be charged if you can’t pay your balance in full every month.