<< Most Recent Articles

Store cards 'best avoided'

A consumer advice group has told UK shoppers to resist the temptation of signing up to a store card this Christmas.

Which? said that store cards should be avoided by consumers "as a general rule" because their interest rates can be very high if holders fail to pay off the full balance each month.

Head of money research at Which? Paul Davies stated that this type of card is only really suitable for people who can be "very disciplined" in their use of the credit and advised consumers to seek a "better way of borrowing" for their festive needs.

Speaking about the group's attitude towards store cards, Mr Davies said: "There are certain instances where it might be worthwhile, but generally as a concept we advise people to steer clear of them."

He added: "They're quite heavily promoted at the point of sale … there is quite a lot of pressure and people may be tempted at this time of year."

A recent study by uSwitch discovered that store card holders pay 62 per cent more interest on average than people using credit cards. Taking out a personal loan may be a more suitable way of borrowing for people who are liable to overspend.

See how much you could borrow when you apply for a loan with Lombard Direct.

© Adfero Ltd

11/12/2007 17:02:55

Most Recent Articles