Related Credit Card Article

"Consumers should opt for credit cards over store cards"

By Reno | May 10th, 2010 | General

Many shoppers will know how easy it can be to be talked into taking out a store card when shopping in branches of many High Street retailers, and in many cases store employees will use offers of discounts and special deals  to try and get the customers to sign up for a store card.

However, a recent report has shown that store cards can be far more costly to use than credit cards, indicating that the average consumers would actually be much better off financially by opting for a credit card rather than a higher interest store card.

With a credit card consumers can enjoy the same flexibility and convenience as they would get with a store card in terms of being able to spread the balance and being able to enjoy cashless transactions when making purchases. They can also enjoy lower interest rates on credit cards and lower penalties than many store cards charge.

One industry expert, Martin Bamford from Informed Choice, said that in many cases consumers were not given the finer details with regards to the cost of using their store cards, and often failed to read or understand the small print, which could turn into a very costly oversight. He said that with careful research consumers could generally get a far better deal on a credit card than on a store card.

A recent poll showed that around 34 percent of consumers have a store card. However, whilst the discounts and special offers may seem tempting at the time the far better choice of many shoppers is well suited credit card.

Mr Bamford said: “You are much more likely to get a better rate of interest from your credit card, particularly if you move to a balance transfer deal in the future.”

Tags: store cards, credit card, Credit Cards, interest rates

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