The Macy’s card is a high interest rate credit card with a number of drawbacks. While really heavy Macy’s shoppers who always pay their credit card bills in full may benefit from the various promotions and deals offered to cardholders, most consumers can easily find a better credit card that is more widely accepted with a lower interest rate and more flexible rewards.

The primary perk that catches the attention of shoppers is that this instant approval credit card can score a quick 15% discount on all purchases made the first two days you have the card. This perk can be very valuable if you are buying holiday gifts or a new wardrobe and your bill is five hundred or a thousand dollars. In these cases, the 15% discount is worth seventy-five to one hundred dollars. However, if you’re only spending $100, this discount is a mere fifteen bucks. Compared to the best credit cards on the market today, many of which offer $100 sign up bonuses, this is chump change.

The Macy’s card also comes with a sky high 24.5% variable interest rate. Considering that average credit card rates are in the mid-teens and low interest credit cards charge around 12%, having debt on this card gets really expensive, very quickly. Add in the fact that using a credit card at Macy’s could induce you to spend more than you can afford, it is very likely you could end up paying for clothes years after you’ve warn them.

To make matters worse, the Macy’s card can only be used at Macy’s or at www.macys.com. Thus, unlike a Visa or Mastercard, this card is useful if and only if you are shopping with Macy’s. Again, consumers who spend heavily there and always pay their bills in full every month might be able to benefit, but most others cannot.

Overall, the Macy’s card is far from good. It has sky high interest rates, can only be used at a limited number of retail outlets, and makes managing personal finances more difficult by adding yet another bill that must be paid or that can be overlooked and subject to $35 late fees.

The one positive about the Macy’s card is that it may be easier to obtain if you lack credit or have been denied credit from a major credit card company. The ease of getting approved, coupled with the potential benefits having a positive account can have on credit scores, does make the Macy’s card a good option for consumers who want a no annual fee credit card that can help them improve their credit scores. For all others, stick to basic, low rate rewards credit cards.

When most people are surprised by their credit reports, it usually an unpleasant surprise.  I once found that one of my credit scores was 50 points lower than my other two.  The reason:  an insurance billing error I disputed five times was never removed from one credit report.

 We get emails all the time from people who can’t understand why they weren’t approved for a credit card.  The problem is often a credit report error.  One recent visitor who was denied for a credit card who insisted he had excellent credit wrote us back to say that one of his credit reports was filled with incorrect information.  At first he thought he had been a victim of identity fraud.  After a few calls to the credit bureau, he found out they had mixed information from someone with the same name with his information. 
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 This is not an uncommon situation.  So, today’s poll is in two parts.  After you vote, please feel free to post a comment.  Any information you can share can prove helpful to other readers.

Over the past few years, credit card companies have changed their rewards programs a good deal.  Two years ago, it was possible to get a credit card that offered 5% cashback on gas, groceries, and drugstore purchases.  Turns out, we credit card users were smarter than the credit card companies gave us credit for being.  People would use their 5% cards everywhere they could get the most rewards, then pay their bills in full each month, denying the credit card companies much coveted interest income.

Consequently, many credit companies reduced credit card cash back programs substantially.  The same is not true for other types of rewards programs.  Airline rewards cards are still offering large bonus miles (and charging hefty fees).  And point programs, which can be used for all types of rewards, are still pretty much unchanged. 

Our question is simple:  What type of rewards program is the best?  Below you can vote for the best type of rewards and leave comments and tips on how to maximize rewards. 
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 At Smart Credit Choices, we maintain an active database of over 100 current credit card offers.  Our goal is to help people like you find the best credit card deal.  Unfortunately, organizing 100 credit cards isn’t very easy.  Currently, we rank credit cards based on a number of factors, including visitor feedback, the quality of the offer, interest rates, rewards programs…the list is quite long.  In an effort to help get the best information to our visitors, we’ll be running polls to determine what matters most to you. 

 Please help us out by voting.  We also look forward to your feedback.

Thanks

The SmartCreditChoices Team

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