Department Store Credit Cards are a ripoff! 🤬

Store credit cards often carry a high interest rate, averaging around 27.7%, with some cards reaching up to 35%. While these numbers are challenging for consumers, they are highly profitable for retailers. The cost of funds for most stores offering credit cards is generally between 4.5% to 5.5%, meaning that retailers are earning a substantial margin of 20-30% on store credit card interest rates alone. This kind of return is often better than what you could expect from the stock market, where average annual returns are typically around 7-10% over time.