We have all heard numerous advertisements for special deals, particularly from electronics companies and furniture retailers. These special deals generally refer to no money down and, sometimes, many years to pay at no interest charges.

The one thing the ads do not point out is that accepting this offer may damage your credit rating. Although that doesn’t seem likely to most of us, the reality is that this does occur.

Credit reporting agencies follow specific guidelines that we are not always aware exist. One of these is that they rate consumers on the amount of their available credit used. Credit reporting agencies expect that you will use 30% of the available credit on a specific account. If you use more than 30%, this is perceived as a negative and can result in the lowering of your credit rating.

When you apply for a store credit card connected with a specific purchase, they usually extend to you a credit line that will cover your purchase and leave a small sum for future purchases. Often, the consumer is using 80% of their credit line for the purchase they are making. This does not sit well with credit reporting agencies. Since 80% usage against a credit line is a negative factor, your rating will automatically be lowered. Of course, the consumer is not aware of this fact while making this purchase.

Before you decide to accept any special deal from a furniture retailer or electronics company, consider the negative effect it may have on your credit rating. This deal could cost you higher interest rates with other companies in the future.