Store cards

Ever been out shopping and seen the item of your dreams, you want it there and then but you are short of cash, you could then be persuaded by an over-zealous staff into taking out a store card.

Store cards are rarely good news. They may come with a range of tempting offers, but they frequently also come with a sting - an annual percentage rate (APR) of about 30%.

People in the UK are increasingly comfortable with credit cards and the market is intensely competitive. But store cards tend to offer less of a good deal - and it can be easy to build up an array of these so that you end up spending way beyond your means.

Many people who take out a store card had no intention of making a purchase before they reached the shops.

Store cards are available at the point of sale, and once a credit check and application form has been completed - which can take as little as 10 minutes - the purchase can be made.

Most financial experts agree that credit cards with lower APR's are generally a better deal than store cards. But, you may be tempted by some of the benefits of a store card. These could include an introductory discount on goods - typically around 10% - or extra money off during the sale period. You could also be invited to sale previews, be sent magazines or catalogues and details of special offers.