Summary

Store cards can be very convenient, offering discounts and rewards. Are they a good bet in the long run?

Store cards - are you storing up problems?

Author: Michael Challiner (mortgage interest rates)

The number of people with one or more credit cards has grown at an unbelievable rate in recent years. Like the mobile phone, the credit card has become a way of life for many people, something theyd be lost without.

The offer of a store card for your favourite store can be tempting and may offer opening discounts, invitations to special events (encouraging you to spend money in the store, of course) and the familiar "If you take out the card today, youll get 10% off your purchases.( Cheap Home Insurance article ) It wont take very long; we can fill the form in now. You may as well take advantage of the offer and get your discount at least." You know how it goes and yes, there are some things youd like and the discount is worth thinking about. Before you know whats happening, youre giving details of your current account etc., etc., etc.

Its a familiar scenario. ( Cheap Mortgage articles ) Over 40% of people who sign up in this way had no intention of doing so when they entered the store, according to the Office of Fair Trading, and yet they may well make a major purchase.

This isnt a problem if you have the money available to clear the balance within the interest free period, which can be from 35 to 55 days, in most cases. However, if youre unable to meet this time-limit you need to be aware that the interest on the outstanding balance can soon mount up. (mortgage deals)

The Consumer Credit card act sets down regulations for any Mortgage articles >loan under £25,000. Whether or not a total overhaul of these rules is necessary is under consideration.

Data provider Moneyfacts provide some enlightening information regarding the variation in store cards interest rates. John Lewis, which includes life insurance specialists Waitrose, has an APR of 13% and Marks & Spencer offer 18.9%, whereas Debenhams and Comets Timecard are currently charging 28% and 29.9% respectively.

Before you sign up to one of these cards, take time to consider:

The discount may be a good deal and if there is a purchase that you are seriously considering anyway and you have the money to fund the purchase within the interest free period. ( bad credit loan ) (loan)

What is the APR rate on this offer? How much will you be charged on the remaining balance?

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