I do a lot of shopping at Square One Shopping Centre in Mississauga. My go-to store, like a lot of people, is Walmart because I can pick up household items as well as my groceries at the same time. Every time I get up to the cash register to pay, the cashier will smile and ask,
I get it. They’re required by the store to ask, and I’m sure there is some sort of bonus built in for every card holder they sign up. But is it actually a good idea to say yes?
Remember, anytime you are solicited by a supermarket or a department store to apply for a credit card, a credit check will be run on you resulting in an inquiry on your file. Saying yes to every offer will stack up the hard inquiries on your file and they will drag your credit score down. Why? Because you’ll look desperate for credit, and lenders don’t like that.
Carrying too many credit cards, especially ones with annual payments, is a horrible idea because it tempts you to spend. Lets not forget that many of these credit cards come with outrageously high interest rates! The best thing to do is to shop around for an all-purpose credit card that has a reward system that suits your lifestyle and your spending goals.
Maintaining responsible credit habits will not only help you get a mortgage when the time comes to buy a home, it will also ensure that you get the lowest mortgage rates on the market!