Store Credit Cards – Cards To Avoid

Store cards are a sure fire way of plunging you into debt if you do not treat them with extreme care and with 5 million Britons taking these cards on over the Christmas period then the chances of consumers falling foul of the high interest rates that they come with is very high indeed.

Most buy into these store cards without the necessary knowledge that is needed when it comes to dealing with store cards and the spate of hidden charges that lurk in the murky depths of the small print.

There have been instances, where consumers who have spent a nominal amount on their store cards of £250, and have seen themselves with interest charges that have amounted to £228 on top of the original £250 that was borrowed, it just doesn’t add up and is mounting to greed by the card companies who sell these cards.

Which in turn has lead to the Competition Commission, getting involved and they have called into question, not only the high interest charges but also the high late payment charge and the mostly unnecessary PPI (Payment Protection Insurance) that they also sell with the store cards.

At best stay away from the store cards, as paying almost double of the original cost of the items that you have purchased just doesn’t make sense, if you stick to or only can pay the minimum monthly payments.

The only reason and I have taken on a store card myself, is to take out the store card when you are purchasing goods from a store and you were paying cash, then by taking out the store card you will be enticed into the store card with a discount, which will be usually 10%, take the card out receive 10% off your purchase, go home put the cash that you were originally going to pay for the goods anyway in a save place and when you receive the statement from the lender, take the original cash pay it off in full and then cancel the store card.

Store cards are generally regarded as the worst type of credit on the market, with high interest rates and assistants that are being asked to sell a product that they have no knowledge of, except the fact that you will get a discount if you take one out and the little pitfalls that are hidden away, so be cautious if you feel that you need one.