Store Card? Try a Credit Card

Posted: 28 Nov 2008 | Categories: Credit

Using a store card may seem like the easiest option, you have lots of wonderful in store offers available to card holders and it is interest free for six months, where is the problem? Like most great things, some of these wonderful deals can have very serious and expensive repercussions if the repayments are not met in full and on time.

Even though the offer may seem too good to be true this Christmas it most probably is when it comes to taking out a store card. There are hundreds of financial offers available over the Christmas period and one of the best methods is to simply take a credit card out.

Some credit cards offer the same interest free on all new transactions with some offering the rate for a further six months. Usually, when the store card’s interest free rating has expired you can expect an average rate of 27 per cent as opposed to a credit cards average rating of 16.9 per cent, a little under half the amount.

An expert ahs said that “Store cards can be a useful way of qualifying for discounts but when it comes to borrowing they are a rip-off”

Many people who pay off the debt before the interest free period finishes actually benefit from the store card but one in ten people who took out store cards last Christmas are still in fact paying it off now.

Applying for store cards is the same as applying for credit cards, be careful if you plan to apply to many as it will have a devastating effect on your credit rating.

Finding interest free credit cards is easy, use comparison sites and compare credit cards across the market, after all this you will need to decide which of the cards you will use.

Barry_Loughran