Opening a new store credit card to get 20% off your purchase today is a harmless way to save money with no real credit consequences. True or false?

Store credit card applications trigger hard inquiries just like any other credit application, and a new account lowers your average account age. The combined effect typically causes a temporary score drop of several to around 10 points. For most purchases, the 20% discount is not worth the credit impact, particularly if you are planning to apply for a mortgage or auto loan in the near future where even a small score decrease could affect your interest rate. Retail cards also typically carry very high interest rates ranging from 25% to 30% annually.