More consumers turning to store debit instead of credit

Because consumers are still generally cautious about taking on credit card debt these days, some retailers are now offering them the alternative of linking their checking account to a store-branded debit card, and the idea is taking off.

There are now several major retail chains which allow customers to open branded debit accounts as a means of incentivizing more use without requiring the shopper to worry about debt, according to a report from the Associated Press. Target and Nordstrom are the biggest names in the business to offer these accounts, and both offer bonuses for use.

Target grants users a 5 percent discount on all purchases made with the card, the report said. Meanwhile Nordstrom has a rewards program that grants users a $20 voucher for every $1,000 spent.

Many consumers may be avoiding store-branded credit cards because they believe they have credit scores that are too low to secure the top rates. But by reviewing their credit reports, they may be able to identify examples of unfair, inaccurate, and unsubstantiated credit reporting that have lowered their credit scores. By working with a credit repair law firm, such consumers may be able to have such marks removed or revised.