Credit Cards that are Bad Ideas

My first credit cards were two store cards, for which I was solicited at age 20. I had gone to JC Penney, where I hardly ever shopped, and to my favorite local department store, Daytons, which is no longer and wrote checks for whatever it is that I bought. Shortly thereafter, the stores called, offering me credit, which I accepted.

One reason, despite my lack of sophistication about finances, was that my older sister had trouble getting credit. Because in order to get credit, you need to have credit. Many people start with a co-signer on a loan or credit card so they can get the loan or use the card.

Thus I was introduced to the world of revolving credit. What I didn't know then is that store cards have very high interest, though, in those days, interest was higher anyway. I rarely used the Penneys card, but frequently gave my Dayton's card a workout.

I tended to keep a running balance and over time discovered that if I got close to my limit, they raised it. Which is great for them, but not so good for the consumer and not so good for the stores now. As it stands, Target's profits took a dive and they're calculating for higher defaults and Macy's which bought the company that was once Dayton's, has had its stock reduced to junk status.

Convincing people that they needed something new this very minute was a great idea while it lasted. I'm a reformed member of the shop-a-holic generation and rarely go to a department store.