Are Retailers Like Curacao Helpful or Harmful to Arizona Consumer Credit Scores?

If you live in the Phoenix, Arizona area, you’re probably familiar with a retail chain called Curacao. This company offers furniture, household appliances, computers, jewelry, and a host of other items. If you’re new to Curacao, the first thing you’ll notice is that the retailer strongly encourages their customers to sign up for its branded credit card. A quick glance through the company’s website makes it clear that most of the Arizona consumers who shop with Curacao do so with credit. It’s also obvious this retail chain largely caters to the Hispanic community. On the Curacao website, most items that are over $50 have a “per month” price listed below the buying price. Shoppers can purchase big ticket items by making small monthly payments over time. Retailers like Curacao give Arizona consumers the opportunity to buy products that they are not able to afford outright. However, the stores also enable customers to build debt, default on payments, and eventually ruin their credit scores. Are the potential opportunities worth the risks? How Arizona Consumers Can Benefit from Using a Curacao Credit Card to Pay for Big Ticket Items over Time First, skeptical Arizonians realize that, if managed properly, credit cards can be used to build good credit scores. The Curacao credit card is fairly easy to obtain (even for consumers with less than perfect credit). Yet, those with bad credit who still qualify for Curacao credit may get a 35% APR. Credit cards issued to applicants with good credit come with a 20% interest rate. Higher credit card interest rates aren’t a problem if you pay off balances in full...

Arizona Consumers should know that NOW is the Time to Pay off High Credit Card Debt

Here’s some bad news for Arizona consumers who carry high credit card balances: Your credit card debt is about to get more expensive. In Arizona and every other state, credit card interest rates are based on consumer credit scores and the prime interest rate which is set by the Federal Reserve. The prime interest rate has recently been bumped up by a quarter percentage point. This may not seem like much of an increase, but a lot of Arizonians will see a significant change on their monthly credit card statements. Also, another quarter point rate hike is expected before the end of 2017. This means that, if possible, you should be paying down high credit card balances. It’s also a good time to improve your credit score in order to qualify for a credit card with a lower interest rate. The Impact of Federal Reserve Interest Rate Hikes on Arizona Credit Card Debt According to USA Today, average credit card interest rates are around 15.07% (with assigned rates for subprime consumers being substantially higher). If an Arizona consumer carries a balance of $5,000 on a card with a 15.7% APR, a quarter point prime rate hike will add about $175 in interest charges for the year. By the time 2019 rolls around, all of the planned prime rate hikes could take an additional $525 annually onto this Arizonians credit card debt. ValuePenguin.com has published statistics showing that the average amount of credit card debt per household in Arizona was $5,673 in 2016. This means that a lot of consumers in the Grand Canyon State are likely to feel the...