You may want to take out a secured credit card or a store credit card (these are easier to
get than standard credit cards) and use them regularly to make small purchases.
Because store credit cards generally charge higher interest rates
than standard credit card products, Synchrony achieves an impressively high margin and generates impressive returns on equity, yet it trades at just over 12 times trailing -12-month earnings.
The average annual percentage rate for a store - issued card is at least 5 %
higher than standard credit cards — and they can be as much as double that of credit cards issued by credit unions.
Firstly, the transaction fees are much
lower than the standard credit card fee of 2 % -3 %, which allowed JM Bullion to save significantly on transaction fees and pass on savings to customers in the form of lower prices.