Building a solid credit history is one of the most critical aspects of financial stability. A good credit score can help ensure access to more credit, apartment rentals, and jobs that might otherwise not be accessible. It demonstrates fiscal responsibility on the part of the account holder. And applying for a store credit card such as Ann Taylor Loft’s MasterCard helps build a good credit history as you use it and make payments on it, as well as earn rewards to your favorite store.
There are many different factors that contribute to your credit history, including but not limited to:
- Credit card utilization
- Mortgage loans
- Student loans
- Automobile loans
- Average length of account history
One of the most significant factors is the first one on the list: credit card utilization. Maintaining several open lines of credit without maxing them out is very important, and it is one that many adults struggle with every day. One of the best ways to do this is to start out with one at a time and to pick a card that also offers rewards that are meaningful to the account holder.
There are pros and cons to the Ann Taylor Loft credit card, much like any credit card:
Pros
The Ann Taylor Loft MasterCard has several benefits. New applicants receive 15% off all purchases the first day they open the account, and earn 5 rewards points for every one dollar spent at an Ann Taylor store as well as rewards points for using the card elsewhere. Every two thousand points results in a $20 gift card to be used at any Ann Taylor store or online. Paying the bill online is easy, and certain sales and discounts are exclusive to card members.
Cons
Like any credit card, there are certain things to be aware of when opening and using the Ann Taylor Loft MasterCard. The interest rate has the potential to be higher than other credit cards, meaning it could potentially cost more if it is not paid off in full every month. These cards typically do not have very high available credit amounts, so they also do not do much for overall credit utilization.
This is just one example of a variety of credit cards that offer rewards to their members. Picking the right credit card is a good way to learn how to manage a budget and help develop a good credit history.
