Avoid Store Cards

Store Cards are similar to credit cards branded with the name of the store like Tesco, John Lewis, Marks & Spencer that issues it and can be used only to purchase goods from that chain. They’re often confused with loyalty cards, yet with store cards you can ‘pay and borrow’; with loyalty cards, you just gather points.

They are often promoted heavily in stores and can initially appear attractive, but beware there are many more disadvantages attached to them.

Avoid Store card Tips

• Excessive rates of interest
  The interest on most store cards is massively more than a standard credit cards up to 30% APR.

• Pushy Sales Staff
  Untrained staff get paid by commissions for signing people with little knowledge about the high interest rates

• Hiding the facts
  It often isn’t very clear when you sign up in store as to what the APR or interest rate is.

• Limited Offers
  Initiate offers get people to sign up and then they raised the interest rate to record highs.

• You are compiled to spend in the store
  With these cards the stores guarantee that we spend on them in their shops.

• Never, ever, use a store card to borrow on.
  If you have one, whatever the reason, always ensure you pay off in full

There are some times we can profit from store cards, yet of course this is providing you never, ever, ever use them for borrowing on.

Reasons to use a store card:

• Grab the initial discount offers.
  Many store cards offer a bribe for signing up at various times – such as 10% off the first time you spend on it.
• Anything at the discount rate too.
  Then get the discount, they get it as well and you pay off the balance in full so there’s no interest charged.
• Ask friends & family if they want use the store card discounts.
• Membership benefits.
  Many store cards have special store card holder evenings and offers, a bit like a membership club.